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Amazon backs out of Souq deal

| By Arabian Post Staff| Amazon.com Inc. and India’s Flipkart Online Services Pvt have walked away from talks to acquire Dubai-based Souq.com after disagreeing over price, Bloomberg reported quoting sources.

Souq is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim, it further said.

Amazon reportedly entered talks with Souq.com last year in a deal that would have been worth about $1 billion. Souq.com was reportedly to have appointed Goldman Sachs Group Inc. to find buyers for a stake.

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 the ecommerce player. According to Bloomberg, the company sells more than 1.5 million products online to customers in countries including the United Arab Emirates, Egypt and Saudi Arabia.

The Middle East ecommerce scene received a big boost when Emaar Chairman Mohammed Alabbar announced the launch of Noon with an initial investment of US$1 billion. Alabbar, who is leading the venture with prominent GCC investors, described Noon as ‘nothing less. (with Bloomberg)

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