Chinese regulators have begun an investigation into the landmark merger of Didi Chuxing and Uber Technologies Inc.’s domestic business, initiating scrutiny of a deal that would create a $ 35 billion entity with overwhelming control of the ride-sharing arena.
The Ministry of Commerce has met twice with Didi executives after the deal was announced in August, requesting documents and other supporting material, ministry spokesman Shen Danyang told reporters Friday.
The government is also seeking a deeper understanding of the ride-sharing sector, he said.
Didi’s decision to buy out Uber’s Chinese operation would give it control of almost 90 percent of the ride-hailing market. Yet the odds are slim that the ministry will nix such a high-profile deal involving a well-connected national corporate champion, legal and industry experts have said. Read more…