BEIJING (dpa-AFX) - Chinese regulators have opened anti-monopoly investigations into Didi Chuxing Technology Co.'s acquisition of Chinese business from ride-hailing giant Uber Technologies Inc. amid concerns over whether the deal complied with the nation's antitrust law, reports said.
China's Ministry of Commerce reportedly said Friday that the investigation was initiated after it received questions over the proposed merger, which would be creating a $35 billion market-leading giant.
The ministry's antitrust unit has already held two meetings with Didi and asked to submit documents and related information on the deal, ministry spokesman Shen Danyang told reporters Friday.
The agency also asked Didi the reason for not applying for antitrust review, reports said, citing a transcript on its website.
It was in early August that Didi agreed to buy Uber China, for which Uber Technologies would be receiving 5.89 percent of the combined company with preferred equity interest equal to 17.7 percent of the economic benefits. Didi's decision to buy out Uber's Chinese operation would give it control of almost 90 percent of the ride-hailing market.
The Ministry of Commerce's Anti-monopoly Bureau is the primary body for assessing the antitrust impact of deals.
The spokesman said, 'As a next step, the commerce ministry will continue to investigate this case in accordance with the law, to safeguard fair competition and consumers' interests.'
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