Russia’s Yandex restructures JV ownership with Uber in $1 billion deal By Reuters
© Reuters. FILE PHOTO: An Uber logo is seen during the global outbreak of the coronavirus disease (COVID-19), in Redondo Beach, Los Angeles, California, U.S., November 2, 2020. REUTERS/Lucy Nicholson
MOSCOW (Reuters) -Russian internet giant Yandex (NASDAQ:) said on Tuesday it would buy Uber (NYSE:)’s stakes in their joint foodtech, delivery and self-driving businesses, and increase its stake in a mobility-focused joint venture as part of a $1 billion deal.
The company added that it had received a call option to purchase Uber’s remaining stake in mobility businesses for up to $2 billion.
The restructured joint venture MLU will continue to focus on mobility businesses, including ride-hailing and car sharing, Yandex said.
Under the agreement, Yandex will receive Uber’s 33.5% indirect interest in Yandex.Eats, Yandex.Lavka and Yandex.Delivery as well as 18.2% interest in Yandex Self-Driving Group (SDG), giving Yandex 100% ownership in all businesses.
“The consolidation of these businesses puts us in a great position to further increase strategic management flexibility, while creating new substantial growth potential for our businesses and cross-platform consumer benefits over the years to come,” said Tigran Khudaverdyan, Deputy CEO of Yandex.
Yandex will also extend its licence for the exclusive rights to use the Uber brand in Russia and several other countries until August 2030, assuming the exercise of the option.
Uber and Russia’s Yandex combined their ride-sharing businesses in Russia and neighbouring countries in 2018.
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