Amazon ‘walks away’ from takeover of Naspers-linked

Lionel Bonaventure, AFP

London - and India’s Flipkart Online Services have walked away from talks to acquire Dubai-based after disagreeing over price, according to two people with knowledge of the matter.

The e-commerce business is now seeking other potential investors and is negotiating with mall-operator Majid Al Futtaim, one of the people said, asking not to be identified as the talks aren’t public.

US online retail giant Amazon entered talks with last year in a deal that would have been worth about $1bn, people with knowledge of the matter said in November.

The Middle Eastern company’s existing investors include Tiger Global Management and South Africa’s Naspers. appointed Goldman Sachs Group to find buyers for a stake last year, according to people familiar with the matter. became the highest valued internet company in the Middle East after a $275m founding round in February 2016, according to Standard Chartered, which has invested in Souq. The company sells more than 1.5 million products online to customers in countries including the United Arab Emirates, Egypt and Saudi Arabia.

A spokesperson for Majid Al Futtaim declined to comment, while Amazon and Flipkart didn’t immediately return requests for comment. wasn’t immediately available to comment.

Investments into technology companies from the Middle East is picking up. Emaar Properties PJSC Chairman Mohamed Alabbar raised $1bn from investors including Saudi Arabia’s sovereign wealth fund to create e-commerce firm Noon, which launches later this month. He is also leading a $1bn technology investment company formed with other regional investors and plans to start a social-media messaging service similar to WhatsApp.

Dubai-based ride-hailing app Careem Networks FZ raised $350m from investors including Japanese e-commerce giant Rakuten and Saudi Telecom in December, valuing it at about $1bn.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Yes, and I've gotten it.
21% - 1421 votes
No, I did not.
52% - 3560 votes
My landlord refused
28% - 1891 votes