One of the largest global retailers Amazon has confirmed that it has acquired Souq.com- Middle East’s largest e-commerce chain. The price of the acquisition deal has not been made public, however, earlier reports suggested a price quote between $650m to $750m.
Ronaldo Mouchawar, Souq. com CEO termed the acquisition deal a vital step to expand the company’s e-commerce presence. Moreover, by joining the Amazon group, the company will aim to enhance its delivery capabilities and customer selection at a faster rate as well as continue to share Amazon’s commitment to empowering sellers.
Through the deal, Amazon will also be acquiring the Fintech Company Payfort, which is a part of the Souq group.
Amazon was not the only contender looking to acquire Souq. In fact, recently Emaar Malls had also placed a bid to acquire Souq for $800m.
Dash Ventures’ Managing Director, Omar J. Sati is of the opinion that the Emaar deal would have been better for Souq in the short term. Amazon deal, though still unclear is likely to be of benefit for the Souq team in the long run as the biggest advantage is that Amazon has the ability to offer share swaps and share incentives in the company. Furthermore, no matter which direction the deal went in, it is valuable and a win situation for Souq, he added.
