Ministry of Economy approves Uber’s acquisition of Careem
June 24, 2019
Minister of Economy of the UAE grants merger control clearance for Uber Technologies, Inc.’s acquisition of the assets of Careem, Inc.
Al Tamimi & Company acting on behalf of Uber Technologies Inc has received a favourable decision issued by His Excellency Sultan Al Mansouri, Minister of Economy approving an application for economic concentration for the acquisition of Careem Inc. assets by Uber Technologies Inc. The Competition Department at the Ministry of Economy conducted a thorough review of the acquisition in accordance with UAE Competition Law and established international best practices following a notification by the parties. Omar Obeidat, Partner and Head of Competition in Al Tamimi & Company described this decision as a “terrific and sound decision” adding that “UAE Ministry of Economy demonstrated a profound understanding of the mobility sector and the concluded the acquisition will not result in a dominant position in a properly defined market. This is also further recognition of the UAE’s dedication to patron and promote innovative businesses”. Uber and Careem operate in a broad market comprising not only ride-sharing but also other modes of transport, including traditional taxis. The market is dynamic and characterised by continuous innovation and expansion. The acquisition will result in efficiencies to drivers and riders in the UAE, as well as to the UAE transport sector and the wider economy. “The decision is conditional on the parties complying with UAE Competition Law, and we are very pleased by His Excellency’s decision.”
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