Talks for the proposed acquisition of the beleaguered Snapdeal by larger rival Flipkart have officially broken off after almost six months of negotiations.
Snapdeal has terminated all talks for a merger with Flipkart and said it will pursue an independent path, Snapdeal spokesperson said on 31 July.
“Snapdeal has been exploring strategic options over the past several months. The company has now decided to pursue an independent path and is terminating all strategic discussions as a result. Snapdeal’s vision has always been to create life-changing experiences for millions of buyers and sellers across India,” Snapdeal spokesperson said
In a statement, the SoftBank Group said: “We respect the decision to pursue an independent strategy. We look forward to the results of the Snapdeal 2.0 strategy, and to remaining invested in the vibrant Indian e-commerce space”.
Snapdeal's largest investor, SoftBank, has been proactively mediating in the talks for sale for the past few months. The deal, however, had not found backing from Snapdeal founders Kunal Bahl and Rohit Bansal.
The latest developments come within days of Snapdeal agreeing to sell its digital payment platform, FreeCharge, to Axis Bank for Rs 385 crore.
One of the sources said if the decision to continue as an independent entity is accepted, it could see Snapdeal reducing its workforce significantly and scaling down operations.
(With inputs from PTI.)
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