Why India’s Snapdeal nixed Flipkart deal at the last minute
The failure to forge a deal is a setback for SoftBank Group, the largest investor in Snapdeal
Mumbai/Bengaluru — India’s Snapdeal said it had decided to remain independent and was ending all talks regarding a sale, bringing the curtain down on months of discussions around a possible acquisition of the e-commerce firm by bigger rival Flipkart. The failure to forge a deal is a setback for SoftBank Group, the largest investor in Snapdeal, as the Japanese firm has been trying to engineer an all-stock transaction for months, as a means to secure a sizeable stake in Flipkart, India’s largest home-grown e-commerce player. The decision also puts e-commerce giant Amazon.com on a stronger footing in India, as for now it deprives Flipkart of a cash infusion from SoftBank which had been expected to come in parallel with this deal. The board of Jasper Infotech, which runs Snapdeal, had agreed in principle to Flipkart’s revised buyout bid of up to $950m and a deal was pending approval of smaller shareholders, Reuters reported last week. But obstacles remained with sources saying founders ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.