China's Didi, partners invest over $100 million in Brazil's 99 company

Logo of Didi Chuxing is seen at its headquarters building in Beijing, China, May 18, 2016. REUTERS/Kim Kyung-Hoon/File Photo

SAO PAULO (Reuters) - Didi Chuxing, China’s largest ride-hailing company, is leading a group investing more than $100 million in Brazilian on-demand taxi and ride sharing company 99, the companies said on Wednesday.

Under the terms of the investment, Didi will gain the rights to nominate a member of 99’s board of directors. In return, Didi will provide “strategic guidance and support.”

Executives at 99 and Didi were unable to disclose the precise amount of the investment, how big a stake in 99 the group is acquiring, or the identity of the other investors.

Didi Chuxing said it has nearly 400 million users across more than 400 cities.

The company cemented its dominance in China’s market this year when it bought Uber’s operations.

In November, Volkswagen AG announced it is in talks with Didi to set up a high-end ride-hailing service.

Reporting by Bruno Federowski; editing by Grant McCool