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By Anshuman Daga and Aradhana Aravindan
SINGAPORE (Reuters) - Southeast Asia's biggest ride-hailing firm, Grab, is in advanced negotiations to buy parts of Uber Technologies Inc's business in the region, said a source with knowledge of the talks, in what would be Uber's second retreat from an Asian market.
Ride-hailing firms have raised billions of dollars to help compete in Southeast Asia where they have been forced into losses partly due to hefty incentives to drivers and discounts to riders.
Grab has a dominant position in several markets in the region of about 640 million people, while Uber has also been expanding. The U.S. ride hailing firm announced a partnership with Singapore's top taxi operator ComfortDelgro
Singapore-headquartered Grab's potential agreement with Uber would be similar to the one struck in China in 2016, when Didi Chuxing bought out Uber's China business and gave a stake in return, said the source, who declined to be identified as the talks are private.
The company, which has an estimated valuation of about $6 billion, counts sovereign wealth fund China Investment Corp, venture capital firm GGV Capital, and Vertex Ventures, a subsidiary of Singapore state investor Temasek Holdings, among its investors.
Bloomberg reported on Thursday that Grab was close to finalising a deal to acquire Uber's business in certain markets in Southeast Asia and may sign a deal this week or next, citing people familiar with the matter.
(Reporting by Anshuman Daga and Aradhana Aravindan; Editing by Muralikumar Anantharaman)
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