Done deal: Amazon is acquiring SOUQ.com
Deal ends mystery surrounding eventual ownership of Souq.com after Emaar expressed interest in the largest e-commerce business in the region
Amazon has announced that it has reached an agreement to acquire SOUQ.com, the e-commerce leader in the Middle East.
Joining the Amazon family will enable SOUQ.com to continue growing while working with Amazon to bring even more products and offerings to customers worldwide, the global e-commerce giant says.
“Amazon’s entry into the region reflects the visionary foresight of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who launched Dubai Internet City in 1999 and adopted the e-commerce and online business legislation of 2002," said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai.
"Furthermore, it reiterates Dubai’s position as a regional and global hub for the world’s biggest and leading organisations, fostering in its ecosystem that amalgamates the brightest minds, talent, thought leaders, entrepreneurs and investors from around the world.”
"Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention, and long-term thinking,” said Russ Grandinetti, Amazon senior vice president, international consumer.
"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."
"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," added SOUQ.com CEO 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."
Subject to closing conditions, the acquisition is expected to close in 2017.
No word on how much Amazon is paying to acquire Souq.com although the Americans had offered $580m. Emaar's Alabbar had countered with a $800m offer.