Didi Chuxing Confirms Acquisition Of Uber's China Unit

Didi Chuxing, China's state operated taxi hailing service and rival to Uber, announced on Monday a move which effectively ends the rivalry between the 2 competing firms. Related Link: What Apple Hopes To Get Out Of Its Didi Chuxing Investment The agreement was speculated by various media sources earlier in the day but Fortune's Erin Griffith tweeted what appears to be an official press release on the transaction.

its official pic.twitter.com/6qZIxm3X6w

— Erin Griffith (@eringriffith) August 1, 2016

Didi Chuxing and Uber reached an agreement in which Didi Chuxing will acquire all of Uber's China-related assets, including the brand, business operations and data. In exchange, Uber will receive a 5.89 percent stake of the combined company with a preferred equity interest of 17.7 percent in Didi Chuxing. in addition, Uber's founder Travis Kalanick will join Didi Chuxing's Board of Directors while Didi Chuxing's founder and Chairman, Cheng Wei, will join Uber's board. Financial terms of the transaction were not immediately reported. Uber was believed to have been operating in China with heavy losses. Fortune reported earlier this year that Uber was losing more than $1 billion a year in China as it attempted to gain an advantage over the fierce competitive environment, including Dixi Chuxing.