Snapdeal Flipkart deal off

Despite some sources talking up the deal last week, it appears that the India e-commerce players Flipkart and Snapdeal are not to merge after all.

Reuters reported last week that the Snapdeal board had agreed in principle to merge with Flipkart in a deal worth a reported $950 million. The media reports had cited multiple inside sources, but it now seems that these may have been a little over optimistic. It now appears that the negotiations have desisted and that Snapdeal is seeking to pursue a path on its own.

Many industry watchers wanted this merger to take place owing to the increasing dominance of Amazon on India’s e-commerce sector. The news that the two companies aren’t merging will certainly be good news for Amazon with no players of a decent size in a position to challenge its dominance on an emerging market.
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