Snapdeal board accepts Flipkart offer

While no formal announcement has been made, the board of India’s Snapdeal has reportedly accepted online retail rival Flipkart’s revised takeover offer of up to $950 million.

Newswire Reuters has published a report that said it had been informed by two separate sources that the deal between Snapdeal and Flipkart had been agreed. No official comment has been made by either party as yet.

If the Snapdeal board agrees to the offer, they must then go to the shareholders of the firm for clearance for the deal to go ahead. This is by no means certain, though Snapdeal’s biggest shareholder, Japanese investment bank Softbank, is said to be positive about the takeover by Flipkart.

The two companies are the biggest home grown online retailers in India, though both have been in competition with global online giant Amazon that opened its Prime offering to India’s residents in 2016.
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