Ride-hailing major Uber’s plan to sell its food delivery business to rival Swiggy has hit a roadblock due to taxation and legal issues, reported The Times of India.

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The said transaction is stalled for now and may only proceed after Uber’s planned IPO in the next one-two months, added the report, citing a person close to the development. There also exists a gap in terms of valuation expectations between the two rivals, the sources told the paper.

As per the report, the transaction was being structured as a share-swap deal with Uber taking shares in the buyer for the agreed-upon valuation ratio. However, the report added that Uber will have to restructure its business before the deal goes forward as it registers all international revenues, to Uber BV registered in the Netherlands.

This, in turn, could give rise to complications regarding taxation and tax withholdings. In addition, the possibility of strict legal scrutiny by Competition Commission of India is further worrying both Uber and Swiggy, the report said.

But if the deal becomes a reality, it is expected that it will help Uber cut down loss from the India business before heading towards an IPO.