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Russia's Yandex buys Uber's stake in taxi JV for $703 million

Published 21/04/2023, 14:26
Updated 21/04/2023, 15:46
© Reuters. FILE PHOTO: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina

© Reuters. FILE PHOTO: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina

(Reuters) -Russian tech giant Yandex said on Friday it had bought Uber (NYSE:UBER)'s stake in their joint taxi venture for $702.5 million, becoming the sole owner of the Yandex.Taxi business and bringing Uber's involvement in Russia to a close.

"As a result of the deal, Yandex will become the sole owner of the group, which includes a taxi ordering service, carsharing and scooter rental," Yandex said in a statement.

Uber in 2021 divested its stake in a foodtech and delivery joint venture with Yandex. The companies joined forces in Russia in 2017 to combine their ride-sharing businesses in Russia and neighbouring countries.

As part of that $1 billion deal, Uber reduced its stake in a separate ride-hailing joint venture to 29%, with Yandex taking out a $2 billion call option to buy out the rest.

Corporate exits from Russia now require approval from a government commission, in light of capital outflows and unprecedented sanctions against Moscow over the conflict in Ukraine.

© Reuters. FILE PHOTO: The logo of Russian technology giant Yandex is on display at the company's headquarters in Moscow, Russia December 9, 2022. REUTERS/Evgenia Novozhenina

Yandex said the deal had received regulatory approval. Measures introduced in late December stipulate that asset sales are permitted provided a 50% discount is given to the buyer following an independent valuation.

Yandex did not mention any discount. Uber could not immediately be reached for comment.

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