Didi Chuxing Said to Buy 99 Uber’s Brazilian Rival

Michael Short | Bloomberg | Getty Images

Jean Liu, president of Didi Chuxing

Didi Chuxing, the Chinese ride-sharing company, has agreed to acquire full control of 99 — the main rival Brazilian rival to Uber and a company in which Didi already holds a stake — for around $600 million, according to three people with knowledge of the transaction.

The all-cash deal changes the competitive landscape for ride-hailing companies, particularly Uber and Didi, the industry’s two biggest players. The companies have been locked in a struggle to dominate as many markets as possible, with fast-growing regions like South America, and Brazil specifically, seen as huge prizes.

Uber and Didi have teamed up in some countries, including China, but Didi’s decision to buy a major Brazilian competitor of Uber puts the companies at loggerheads on a different continent.

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The deal also reflects Didi’s effort to accelerate its global footprint outside China. In December, the company raised $4 billion in financing from investors that included the Japanese conglomerate SoftBank, partly to fuel that expansion.

Follow Vinod Sreeharsha and Mike Isaac on Twitter: @VinodSreeharsha and @MikeIsaac

Vinod Sreeharsha reported from Rio de Janeiro and Mike Isaac from San Francisco.