Shares of Uber Technologies (UBER) - Get Uber Technologies, Inc. Report edged higher after Russian internet company Yandex (YNDX) - Get Yandex NV Class A Report said it was purchasing the ride-hailing giant's stakes in their joint food-delivery and self-driving businesses.
Yandex will also increase its stake in the pair's ride-hailing joint venture as part of a $1 billion deal.
The moves will see Yandex take over Uber's 33.5% indirect interest in Yandex.Eats, Yandex.Lavka and Yandex.Delivery, giving the Russian company 100% ownership in all three.
Yandex will also acquire Uber's 18.2% interest in Yandex Self-Driving Group.
Yandex's $1 billion also garnered a 4.5% interest in the newly restructured MLU joint venture, which focuses on mobility businesses, giving Yandex and its employees a combined 71% interest in the businesses.
"The consolidation of these businesses puts us in a great position to further increase strategic management flexibility, while creating new substantial growth potential for our businesses and cross-platform consumer benefits over the years to come," Yandex Deputy Chief Executive Tigran Khudaverdyan said in a statement.
The plan, which Yandex says has been approved by both companies' boards, will be implemented in two stages and be completed by year's end.
The two companies began their partnership on the joint ventures in 2018. Yandex has an option to extend the current license for exclusive rights to use the Uber brand in Russia and certain other countries through August 2030.
At last check, shares of Yandex were rising 0.9% to $73.81 while Uber shares were up 0.2% to $39.65.