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Uber’s merger with ride-sharing company Yandex in Eastern Europe is one step closer to completion after getting the green light from Russia’s Federal Antimonopoly Service (FAS).
The Belarus Ministry of Antimonopoly Regulation has also approved the deal, leaving Kazakhstan’s regulatory body as the last main hurdle.
Back in July, Uber and Yandex announced the merger plans, which include creating a new standalone company that combines the ride-sharing services of the two technology titans. This service will target Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia — but not Ukraine. Uber will also include its UberEats food delivery service as part of the combined company.
It’s still unclear what name the new venture will go under, but for now the entity is referred to as NewCo, and its ownership will be divided between Yandex (59.3 percent), Uber (36.6 percent Uber), and employees (4.1 percent). In terms of direct financial investment, however, Uber is plowing $225 million into NewCo, while Yandex is only throwing in $100 million, a reflection of the fact that Yandex holds a much larger share of the local market.
Assuming all remaining hurdles are cleared, the transaction is expected to close in January, 2018.
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