Didi to buy Uber's China business in $35 billion deal
The deal is valued at $35 billion, according to a source familiar with the matter who didn't want to be named before the deal was made public, combining Didi's $28 billion worth and Uber China's $7 billion valuation.
Didi confirmed the agreement on its official microblog, but gave no valuation.
San Francisco-based Uber Technologies will receive a 5.89 percent stake in Didi - but will have disproportionate "economic interests" of 17.7 percent with another 2.3 percent interest going to Uber China shareholders.
Uber will continue to operate independently, the Didi posting said. "Cooperating with Uber will give the entire mobile travel industry a healthier order and a period of a higher level of development," it said.
Uber CEO Travis Kalanick will join Didi's board, while Didi Chuxing chief Cheng Wei joining the Uber board.
China has been a challenging market for Uber, which has been burning through more than $1 billion a year in a price war with Didi. Uber is profitable in the United States, Canada and about 100 other cities. ■