[March 26, 10am]: This article has been updated with details from a press release issued by Grab on Monday morning.
Ride-hailing firm Uber Technologies has agreed to sell its Southeast Asian business to bigger regional rival Grab, sources with knowledge of the matter said on Sunday, in what would be the US company's second retreat from Asia.
The deal, which could be announced as early as Monday, marks the industry's first big consolidation in Southeast Asia, home to about 640 million people, and puts pressure on rivals such as Indonesia's Go-Jek, backed by Alphabet's Google and China's Tencent Holdings.
Grab announced on Monday that it will integrate Uber’s ridesharing and food delivery business in the region into Grab’s existing multi-modal transportation and fintech platform.
As part of the transaction, Uber would get a stake of 27.5 per cent in the combined business, said a source with direct knowledge of the matter who did not want to be identified as the deal is not yet public.
Another source familiar with the deal said Uber would acquire a 25 per cent to 30 per cent stake in Grab, valuing the entire business at US$6 billion (S$7.8 billion), the same valuation it commanded in its most recent capital raising.