Amazon, Flipkart said to drop $1 billion Souq acquisition bid

Amazon and Flipkart have walked away from talks to acquire Dubai-based e-commerce firm Souq.com after disagreeing over price


Online retail firm Souq.com is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim.
Online retail firm Souq.com is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim.

Dubai/London: Amazon.com Inc. and India’s Flipkart Online Services Pvt. Ltd have walked away from talks to acquire Dubai-based Souq.com after disagreeing over price, according to two people with knowledge of the matter.

The e-commerce business is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim, one of the people said, asking not to be identified as the talks aren’t public.

US online retail giant Amazon entered talks with Souq.com last year in a deal that would have been worth about $1 billion, people with knowledge of the matter said in November. The Middle Eastern company’s existing investors include Tiger Global Management and South Africa’s Naspers Ltd. Souq.com appointed Goldman Sachs Group Inc. to find buyers for a stake last year, people familiar with the said.

Souq.com became the highest valued Internet company in the Middle East after a $275 million founding round in February 2016, according to Standard Chartered Plc., which has invested in Souq. The company sells more than 1.5 million products online to customers in countries including the United Arab Emirates, Egypt and Saudi Arabia.

A spokesman for Majid Al Futtaim declined to comment, while Amazon and Flipkart didn’t immediately return requests for comment. Souq.com wasn’t immediately available to comment. Bloomberg

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