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Snapdeal Up For Sale at $950 mn: Largest Indian E-commerce Deal

The board-level talks of Snapdeal are believed to start by Monday, which will be followed by a shareholder vote on the buyout offer

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Sarabjeet Kaur
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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.

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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.

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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.

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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.

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