Amazon buys Arab e-retailer Souq.com despite $800 million counteroffer

Amazon buys Arab e-retailer Souq.com despite $800 million counteroffer
1 min read
28 March, 2017
Amazon buys the Middle East's biggest online retailer Souq.com for an undisclosed amount, a day after a counteroffer of $800 million from the operator of Dubai's biggest mall became public.
Amazon will acquire the Middle East's largest online retailer Souq.com [AFP]
Amazon will acquire the Middle East's largest online retailer Souq.com, the two companies said in a statement on Tuesday without disclosing the value of the deal.

The announcement comes a day after Dubai-based Emaar Malls confirmed offering $800 million to acquire Souq.com.

Amazon had walked away from talks with Souq.com earlier this year, but it reportedly came back with an offer of $650 million.

The deal is expected to be finalised this year "subject to closing conditions," the statement said. 

"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 Souq.com chief executive officer and co-founder Ronaldo Mouchawar.

"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," he said in the statement.

Founded in 2005, the e-commerce site emerged as the highest-valued internet company in the region last year after a funding round raised more than $275 million.