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After months of talks and negotiation, Amazon Inc. has officially announced that they have reached a final agreement to acquire Souq.com, a leading e-commerce giant in the Middle East. The new deal will prompt Souq.com to continue growing whilst collaborating with Amazon to deliver their products to customers worldwide.
Russ Grandinetti, the Amazon Senior Vice President, International Consumers, stated that "Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention, and long-term thinking. SOUQ.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We're looking forward to both learning from and supporting them 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."
Ronaldo Mouchawar, CEO and Co-Founder of Souq.com, stated that, "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. 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."
The acquisition is said to come to closing conditions in 2017. It’s interesting to see how things turned out to be as Emaar Malls had reportedly offered a bid of $800 million that actually was much more than what Amazon had reportedly offered for $580 million. While it was thought that the shareholders would want the maximum return which favors the deal from Emaar, it was reported that Souq.com was restricted to accept any counter-offers while the talks of the deal were going on with Amazon.
So now, what next? Will we see Amazon e-sellers come in the Souq.com portal? Or will Souq.com co-exist or convert into an Amazon.ae? Regardless, this is an exciting news for all e-shoppers who wants to buy electronics goods at great prices.