Uber to announce deal to buy rival Careem as early as this week: Bloomberg

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<img src="https://s4.reutersmedia.net/resources/r/?m=02&d=20190324&t=2&i=1369660653&r=LYNXNPEF2N0LZ&w=450" aria-label="A cell phone with the Uber transport technology app, with the destination and its cost to the international airport, is seen inside a car with an Uber driver, in Santiago, Chile, March 15, 2019. REUTERS/Rodrigo Garrido”>

A cell phone with the Uber transport technology app, with the destination and its cost to the international airport, is seen inside a car with an Uber driver, in Santiago, Chile, March 15, 2019. REUTERS/Rodrigo Garrido

(Reuters) – Uber Technologies Inc will announce plans to acquire Dubai-based rival Careem Networks FZ as early as this week, Bloomberg reported on Sunday, citing people familiar with the matter.

Uber will pay $1.4 billion in cash and $1.7 billion in convertible notes, which will be convertible into Uber shares at a price equal to $55 per share, according to a term-sheet that Bloomberg said it had seen.

Careem declined comment while Uber did not immediately respond to a request from Reuters comment.

Uber has been preparing for an initial public offering, and its bankers have indicated that it could be valued at as much as $120 billion.

Reporting by Mekhla Raina in Bengaluru; Editing by Leslie Adler