Didi, Uber deal may need Mofcom approval

A merger between Chinese ride-hailing firm Didi Chuxing and the China unit of U.S. rival Uber could face its first hiccup after China’s commerce ministry (Mofcom) said on Tuesday it had not received a necessary application to allow the deal to go ahead, Reuters reports. However, Didi said there was no need to seek regulatory approval because the two companies lack profits. Didi’s acquisition of Uber’s China operations will create a roughly $35 billion ride-hailing giant and could raise monopoly concerns as Didi claims an 87% market share in China. Uber China is the second largest player. Mofcom, one of China’s anti-trust regulators, said at a news briefing that the two firms need to seek approval for the deal to go ahead.