Uber's Chinese rival acquiring company's China operations

BEIJING (AP) — Uber Technology Ltd.'s main Chinese rival said Monday it is acquiring the U.S. ride-hailing service's China operation in a deal that links the companies following a costly battle to attract riders.

Foreign technology brands have struggled in China's populous but intensely competitive market.

Didi was formed by the February 2015 merger of competing ride-hailing services launched by Chinese Internet giants Tencent Holdings Ltd. and Alibaba Group following a similar battle for customers.

Monday's announcement came after the Chinese government on Thursday announced its first rules for the ride-hailing industry, confirming the legal status of the industry after repeated run-ins with regulators.