China's Ministry of Commerce said on Aug. 2 that Didi Chuxing, the country's leading car-hailing app, cannot proceed with its Uber China buyout deal without giving prior notification to the ministry.
"The Ministry of Commerce has yet to receive the notification of intent from Didi Chuxing and Uber China. In accordance with China's Anti-Monopoly Law and the provisions of the State Council on Notification Thresholds of Concentrations of Business Operators, the notification is required before the actual merger goes through," spokesperson Shen Danyang said at a press conference on Aug. 2.
Shen pointed out that Didi Chuxing also failed to submit the notification before its 2015 merger with Kuaidi Dache, the Alibaba-backed service.
"If Didi Chuxing and Uber China intend to proceed with the buyout, they cannot do so without submitting formal notification," Shen emphasized.
In response to the ministry's statement, Didi Chuxing issued its own statement, saying that both companies had so far failed to achieve profitability in China, and the revenue of Uber China in the last fiscal year did not meet the standard for mandatory notification.
