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Yandex and Uber to merge in Russia and five other countries

A man exits the Uber offices in Queens, New York, U.S., February 2, 2017.

Brendan McDermid

FRANKFURT (Reuters) - Yandex, the "Google of Russia", and Uber have agreed to merge their ride-sharing businesses in Russia and five neighboring markets with Yandex as leading partner, the companies said on Thursday.

The deal marks another pullback from Uber's breakneck global expansion, coming a year after its exit from China.

In a joint statement, Yandex and Uber said they will join forces in Russia, Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan to create a new company operating in some 127 cities, in a deal expected to close in the fourth quarter.

As part of the deal, Uber will contribute its UberEATS food delivery business in the six-country region to the new venture. Diversified internet giant Yandex is the dominant player in Web search, maps and mobile navigation in the region.

San Francisco-based Uber has agreed to invest $225 million while Yandex has agreed to invest $100 million into a new joint company in which Yandex will own 59.3 percent, Uber hold 36.6 percent and employees having a 4.1 percent stake.

Uber said that the merger in Eastern Europe does not imply a...


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