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RUSSIA'S ECONOMY

Russia’s antimonopoly regulator does not expect Yandex-Uber deal to monopolize market

KAZAN, September 15. /TASS/. Russia’s Federal Antimonopoly Service (FAS) does not expect the taxi-hailing market to be monopolized as a result of the deal between Yandex and Uber, the regulator’s head Igor Artemyev said Friday, adding though that it may provide companies with directions.

"We positively view the transaction. Given that more than ten companies operate on the market this type of merger will not cause a market monopolization. However, as it is tied with digital technologies directions may be provided," he said.

Yandex.Taxi and Uber announced that the companies had agreed to merge their businesses in Russia, Azerbaijan, Armenia, Belarus, Georgia and Kazakhstan in mid-July. Uber will invest $225 mln, while Yandex will invest $100 mln in the joint venture. Yandex will own 59.3% of the new business, Uber will own 36.6%, while employees will own 4.1%.

The transaction is still subject to regulatory approvals and is scheduled to close in Q4 2017.

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