Uber Cedes Russia to Yandex With $3.7 Billion Merger Agreement

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Uber Cedes Russia to Yandex With $3.7 Billion Merger Agreement

 

• Yandex to take controlling stake in new combined venture
• Deal marks Uber’s second major global retreat after China

 

Uber Technologies Inc. is handing over the keys to its business in Russia.

 

The San Francisco-based company and Yandex NV are merging their ride-hailing businesses in Russia. Uber will invest $225 million and take a 36.6 percent stake in a new, yet-to-be named venture that will be valued at $3.73 billion, the companies said in a statement Thursday. The shares of Yandex, which will invest $100 million and own 59.3 percent of the new enterprise, jumped as much as 15 percent in Moscow to 1,881 rubles, its highest level ever.

 

Overall, the deal will result in a better experience for international tourists coming to Russia for the World Cup next year. Hopefully, the rates will rise too.