Wired News - Russia's FAS Approves Merger of Yandex and Uber's Ridesharing Business
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LONDON, UK / ACCESSWIRE / November 28, 2017 / Active-Investors issued a free report on Yandex N.V. (NASDAQ: YNDX), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=YNDX as the Company's latest news hit the wire. On November 24, 2017, the Company announced that Russia's Federal Antimonopoly Service (FAS) had approved the previously announced merger of Yandex and Uber's ridesharing business in Russia. The Company also disclosed that the Ministry of Antimonopoly Regulation and Trade of the Republic of Belarus has also approved the merger in Belarus and that it was awaiting approval from the antimonopoly service of Kazakhstan. Sign up now for our free research reports at: www.active-investors.com/registration-sg.
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While approving the Yandex-Uber merger, Anatoly Golomolzin, the Deputy Head of FAS said, "Currently, there is a tendency in the market to consolidate existing players and strengthen their role in the market. At the same time, we understand that it is important to ensure the development of competition in such markets even at the very first stage so that all market participants are on an equal footing."
The completion of the Yandex and Uber merger in Russia will allow customers to use both Yandex.Taxi and Uber apps. On the other hand, the driver-side apps will be integrated after the transaction closes. This will ensure that passenger wait time is reduced drastically and the driver utilization rates increases, resulting in higher service reliability.
The merger will allow both companies to operate in nearly 127 cities in six countries across the region, some of these are new cities are where the companies do not have operations. The merger values the new company at $3.725 billion on a post-money basis. Post the merger, Yandex is expected to own 59.3% stake in the new company, while Uber would own 36.6% stake, the remaining 4.1% stake will be owned by the employees of the new company. The new company's Board of Directors will have a total of seven members out of which four members will be from Yandex and three members will be representatives from Uber.
If all remaining hurdles are cleared, the transaction is now expected to close in January 2018.
The Yandex and Uber Merger in Russia
Yandex (NASDAQ: YNDX) and Uber had announced in July 2017 that both Companies had signed an agreement to form a new company and to combine their ridesharing businesses in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia. As per the terms of the agreement, Uber will invest $225 million in the new company and Yandex will contribute $100 million. The new Company will combine the ridesharing, food delivery, and logistics business of both companies in the region. The merger will leverage Uber's global experience in ridesharing and Yandex's local expertise in search, maps, and navigation in the region. This combination is expected to develop a fast-growing, sustainable business that best serves the needs of riders, drivers, and cities in the said region.
Both Companies' Board of Directors had already approved the deal. The merger was expected to close in Q4 2017 subject to receiving regulatory approvals and other closing conditions.
At the time of the signing of the agreement, Tigran Khudaverdyan of Yandex.Taxi, had said, "The combined companies currently perform over 35 million rides a month while growing over 400% year-over-year. Since founding Yandex.Taxi in 2011, we have connected tens of millions of riders and drivers to become the largest and most trusted ridesharing business in Russia and neighboring countries. We are excited to expand on this foundation in collaboration with Uber."
Pierre-Dimitri Gore-Coty, Head of Uber in Europe, the Middle-East, and Africa (EMEA) had commented, "Not only is this partnership good news for our two companies, it's also great for riders, drivers, and cities across the region. This deal is a testament to our exceptional growth in the region and helps Uber continue to build a sustainable global business."
About Yandex N.V. (NASDAQ: YNDX)
Headquartered in Moscow, Russia, Yandex operates an Internet search engine in Russia and internationally. The Company offers search, location-based, personalized, and mobile services that enable users to find information, and communicate and connect over the Internet from desktops and mobile devices. The Company aims to consumers and businesses better navigate the online and offline world and has developed leading on-demand transportation services, navigation products, and other mobile applications for millions of consumers across the globe.
About Uber
Founded in 2009, Uber is a San Francisco, California based global transportation technology Company that offers ridesharing service via an app which provides a credible alternative to car ownership. The Company has now expanded to quick food delivery via its UberEATS app and working on self-driving cars. The Company has completed nearly 10 million trips per day so far and operates in 616 cities across 77 countries. It is supported by 2 million drivers and a global team of 16,000 employees.
Stock Performance Snapshot
November 27, 2017 - At Monday's closing bell, Yandex's stock fell 1.63%, ending the trading session at $34.43.
Volume traded for the day: 2.56 million shares.
Stock performance in the last month - up 5.35%; previous three-month period - up 16.83%; past twelve-month period - up 84.81%; and year-to-date - up 71.04%
After yesterday's close, Yandex's market cap was at $10.87 billion.
Price to Earnings (P/E) ratio was at 102.17.
The stock is part of the Technology sector, categorized under the Internet Information Providers industry.
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