Online sales giant Amazon has reportedly walked away from talks to acquire Dubai-based Souq.com after a disagreement over the price.
Bloomberg cited two sources as saying Amazon and India’s Flipkart are no longer in the running for the site, which is currently the Middle East’s biggest e-commerce player.
Souq is now seeking other potential investors and negotiating with mall operator Majid Al Futtaim, the new service cited one of the sources as saying.
Bloomberg first reported that Amazon was in talks to buy Souq in a deal valued at $1bn in November.
The company’s position in the regional e-commerce market is being challenged by well-funded competitor Noon.com, which is backed by UAE billionaire Mohamed Alabbar and Saudi’s Arabia Public Investment Fund.
Alabbar has promised to dominate Middle East e-commerce with the firm, which is expected to launch this month.
E-commerce site Noon to focus on fashion, will launch large private label https://gulfbusiness.com/e-commerce-site-noon-to-focus-on-fashion-launch-large-private-label/
Souq’s existing investors include Tiger Global Management and South Africa’s Naspers Ltd.
The company hired Goldman Sachs as an advisor following a $275m fundraising round completed in February that valued the firm at more than $1bn, according to some estimates.