India’s Snapdeal cancels merger talks with Flipkart
Indian online marketplace Snapdeal has refused to continue its merger talks with rival Flipkart, ending months of speculation that the takeover will soon be finalised.
The e-commerce retailer has instead chosen to continue operating independently.
Flipkart recently sweetened its proposal to acquire Snapdeal, which is operated by Jasper Infotech, by increasing its offer to around $900m. This was agreed in-principle by Jasper board members.
The deal was awaiting shareholder approval.
A Snapdeal spokesperson was quoted by media sources as saying: “Snapdeal has been exploring strategic options over the last several months.
“The company has now decided to pursue an independent path and is terminating all strategic discussions as a result.”
The decision comes after Snapdeal agreed to sell its FreeCharge digital payment platform to Indian private banking firm Axis Bank.
Snapdeal is now planning to renew its business operations following the FreeCharge deal and by achieving gross profit this month.
Its market position steadily declined in the face of stiff competition from Amazon and Flipkart.
The company is supported by Japan’s SoftBank, and venture capital firms Kalaari Capital and Nexus Venture Partners.
In addition, it is engaged in negotiations with potential buyers in connection with the sale of its logistics division Vulcan Express.