Amazon to buy largest Mideast e-retailer Souq.com

March 28, 2017 (4 weeks ago)
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Amazon will acquire the Middle East’s largest online retailer Souq.com/AFP

, DUBAI, United Arab Emirates, Mar 28 – 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.

Amazon and Souq.com “share the same DNA,” Amazon’s senior vice president for international consumer Russ Grandinetti said in the statement.

“We’re both driven by customers, invention, and long-term thinking,” he said.

“We’re looking forward to both learning from and supporting them (Souq.com) with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East,” he added.

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.

Souq.com attracts over 45 million visits per month.

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