Amazon reaches deal to acquire Souq.com

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Dubai: The global e-retailing giant Amazon has acquired Souq.com, the regional ecommerce leader, in one of the most anticipated corporate deals in the region so far this year. The value of the deal has not been formally announced. The acquisition proceedings are expected to be completed this year itself.

“Amazon and Souq.com share the same DNA – we’re both driven by customers, invention, and long-term thinking,” said Russ Grandinetti, Amazon Senior Vice-President, International Consumer. “Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers.”

Amazon had made an offer of more than $600 million, according to sources, which was countered by Emaar Malls pitching in with another of $800 million (and a $500 million deposit).

Apparently, Souq’s decision to go with Amazon could be about gaining a better fit with a like-for-like vendor. Emaar Malls wanted to buy Souq to create an online platform to the extensive brick-and-mortar assets in the forms of its mega malls.

“We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region,” said Ronaldo Mouchawar, Souq.com CEO and co-founder. “By becoming part of the Amazon family, we’ll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon’s great track record of empowering sellers.”

The global e-tailing giant Amazon has acquired Souq.com, the regional ecommerce leader, in one of the most anticipated corporate deals in the region so far this year. The value of the deal has not been formally announced. The acquisition proceedings are expected to be completed this year itself.