In what can be suspected as being the largest e-commerce takeover deal in India, Indian online marketplace Snapdeal has accepted Flipkart’s revised takeover offer of up to $950 million. The indigenous online business has called a shareholders’ meeting to get the deal finalized post their approval on the offer.
Jasper Infotech, the board of Snapdeal, has approved Flipkart’s offer of selling the e-commerce major in $900 -$950 million. The board-level talks are believed to start by Monday, which will be followed by a shareholder vote on the buyout offer. The negotiations on Monday will result in the outcome of key commercial and pricing negotiations which will further finalize a Sale and Purchase Agreement (SPA), binding both the companies to seal the deal.
According to Reuters, Flipkart had earlier offered $850 million to takeover the indigenous e-commerce business. However, it was only after continued negotiations and offering revised takeover of $950 million that Snapdeal’s board finally agreed to sell its online business. The merger will mark one of the biggest acquisitions and make Flipkart into being the largest e-commerce firm. After acquiring the rival online marketplace, Flipkart will enter the budding space of potential gains or losses by battling for primacy against Amazon.com.
Additionally, in further developments, Snapdeal’s board and owner of FreeCharge has consented to sell the digital payment platform to Indian private-sector lender Axis Bank for $60 million. However, formal announcement on this takeover is yet to be made by the company.