Caixin
Aug 17, 2016 07:22 PM

Didi and Uber Yet to Apply for Govt. Approval for Merger

(Beijing) – The Ministry of Commerce said it is still waiting for online car-hailing giants Didi and Uber to apply for permission for their US$ 35 billion merger announced earlier this month.

The commerce ministry, one of the country's anti-trust regulators, said the two sides "cannot proceed unless they apply for permission," on August 2, a day after Didi Chuxing Technology Co. announced plans to tie up with Uber Technologies Inc.'s China.

The National Development and Reform Commission, the country's top economic planner, said August 3 it would also probe the deal to see whether it would create a monopoly, state-run Xinhua News Agency reported.

According to China's Anti-Trust Law, deal-making companies must apply for a government approval if their combined global revenues exceeded 10 billion yuan or domestic earnings were more than 2 billion yuan in the previous fiscal year, and at least two entities involved in the deal made 400 million yuan each in China.

Prior to these remarks from the regulators, Didi had said it did not need to seek government approval because both Didi and Uber China have not turned a profit in the country so far.

Contact reporter Chen Na (nachen@caixin.com); editor Poornima Weerasekara (poornima@caixin.com)

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