Amazon Reported Considering $1bn Acquisition of Souq.com
Bloomberg announced today that Amazon is considering acquiring Dubai-based online retailer Souq.com for approximately $1 billion in a deal that will give them an opportunity to access the Middle-East market. The $1 billion deal would be the largest exit from the MENA region to date.
Initially, the plan for Souq.com was to sell a stake of at least 30% but the Seattle-based Amazon is considering a bid for the entire site. No final agreements have been reached and negotiations might still fluctuate. Back in September, Souq.com arranged with Goldman Sachs Group to find buyers for a share of the company. This news follows the recent announcement that Al Abbar and Public Investment Fund are teaming up to launch, Noon.com, the region’s biggest e-commerce platform at an initial investment of $1 billion. The e-commerce platform is set to launch in January 2017, with 20 million products initially operating in UAE and KSA, Souq.com’s key markets.
Souq.com currently sell more than 1.5 million products online to their customers and after Tiger Global and Nasper boosted their investment in February, the company secured $275 million. At the time, Chief Executive Officer Ronaldo Mouchawar said in an interview that they would be open to selling shares to the public in the future.
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