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Uber looking to sell Southeast Asia business to rival company

The logo of transport network company Grab is seen inside a mall in Manila, Philippines on Saturday, May 27, 2017. Photo: Richard James Mendoza/NurPhoto via Getty Images

Uber is reportedly preparing to sell its Southeast Asian operations to Grab, its rival in the region that's also backed by investor Softbank, in exchange for a stake in the company, according to CNBC.

Why it makes sense: The deal would be similar to what Uber did with its Chinese operations in 2016, which put an end to the $1 billion it was spending per year there. Earlier this week, Uber CEO Dara Khosrowshahi called the company's spending to compete in regions like Asia "optional," adding that its ride-hailing business in developed markets like North America and Europe is financially sustainable.

Grab declined to comment and Uber has not returned a request for comment.