India’s Snapdeal has abandoned merger negotiations with larger e-commerce rival Flipkart, resolving to remain independent and bringing months of talks to an end.
Snapdeal is India’s third-largest online marketplace, and is controlled by Jasper Infotech – the board of which recently gave the green light to Flipkart’s proposed takeover bid of between $900 million and $950 million. Despite the approval, the bid was not a done deal as it required clearance from Snapdeal’s smaller shareholders.
A statement from Snapdeal confirmed that “the company has decided to pursue an independent path and is terminating all strategic discussions,” with founders Kunal Bahl and Rohit Bansal mulling the direction that the firm should take.
Flipkart, which is India’s largest e-commerce firm, had its first takeover offer of $700 million to $750 million rejected by Snapdeal. It upped its offer last month, securing the approval of Jasper Infotech’s board. Flipkart has been pursuing a buyout since May, when a deal brokered by Japan’s SoftBank – which is a major investor in Snapdeal - almost came to fruition.
