Uber in advanced talks to buy Middle East rival Careem: Bloomberg

FILE PHOTO: Uber's logo is displayed on a mobile phone in London, Britain, September 14, 2018. REUTERS/Hannah Mckay/File Photo

(Reuters) - Uber Technologies Inc is in advanced discussions to buy its Dubai-based rival Careem Networks FZ, Bloomberg reported on Thursday, citing people familiar with the matter.

The companies may announce a cash-and-stock transaction that values Careem at about $3 billion in the coming weeks, the report said.

Uber did not immediately respond to Reuters request for comment, while Careem declined to comment.

Negotiations are going on and no final decision has been taken, according to the report.

Uber, which is on track to go public this year, has been seeking new avenues of growth even as it faces severe competition in its core business of ride hailing.

Uber has received estimates from IPO bankers that have pegged its value at up to $120 billion, sources told Reuters.

Reporting by Sayanti Chakraborty in Bengaluru; Editing by James Emmanuel