China regulator says Didi, Uber deal will need Mofcom approval

People walk out of the headquarters of Didi Chuxing in Beijing, China, May 18, 2016. REUTERS/Kim Kyung-Hoon

BEIJING: A merger between Chinese ride-hailing firm Didi Chuxing and the China unit of US rival Uber could face its first hiccup after China's commerce ministry (Mofcom) said on Aug 2 it had not received a necessary application to allow the deal to go ahead. 

Didi's acquisition of Uber's China operations, announced on Aug 1, will create a roughly US$35bil (RM141.80bil) ride-hailing giant and could raise monopoly concerns as Didi claims an 87% market share in China. Uber China is the second largest player.