Amazon.com could be on its way to the region

E-commerce giant mulls bid for stake in Dubai’s Souq.com, according to Bloomberg

Tags: Amazon.com IncorporatedE-commerceSouq.comUnited Arab Emirates
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Amazon.com could be on its way to the region Amazon.com entry would shake up the regional e-commerce industry.
By  David Ndichu Published  November 3, 2016

Amazon.com is weighing a bid for a stake in Dubai-based online retailer Souq.com as the e-commerce giant seeks to expand in the Middle East, reports Bloomberg, citing people with knowledge of the matter.

The stake, representing at least 30 percent of the company, is also drawing interest from private equity firms and regional, family-owned companies seeking to expand into web sales, the people told Bloomberg, asking not to be identified as the information is private. Souq.com’s advisers reached out to a large number of potential bidders for the holding, which may value the company at least $1.2 billion. No final decisions have been made, and the company has not agreed to a deal with any of the parties, the report added.

Spokesmen for Souq.com and Amazon didn’t immediately respond to Bloomberg requests for comment, the business news firm said.

The company secured $275 million from investors after Tiger Global and Naspers, among others, boosted their investments in February. CEO Ronaldo Mouchawar was quoted at the time saying that the company would be open to selling shares to the public in the future.

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