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Amazon Makes Middle East Debut With Souq.com Acquisition

The online retail giant beat a rival bid of $800 million by Emaar Malls to acquire Middle East's largest online retailer Souq.com.
Amazom.com has agreed to acquire Middle East online retailer Souq.com.
Amazom.com has agreed to acquire Middle East online retailer Souq.com.
New Delhi: US online retail giant Amazon.com said on Tuesday that it had bought Souq.com, an e-commerce marketplace based out of Dubai. The company, which operates in countries including the United Arab Emirates, Egypt and Saudi Arabia is the largest online retail space in the Middle east.

The value of the deal was not disclosed.

"Amazon and SOUQ.com share the same DNA - we're both driven by customers, invention, and long-term thinking," said Russ Grandinetti, Amazon Senior Vice President, International Consumer, in a statement.

Founded in 2005, Souq.com has emerged as the highest-valued internet company in the Middle-east last year after a funding round raised more than $275 million (250 million euros). Investors in the site include Standard Chartered Private Equity and the International Finance Corporation, a member of the World Bank Group.

Amazon's acquisition of Souq.com was challenged by a last minute bid by worth $800 million by Emaar Malls PJSC, the operator of the world's biggest shopping center on Monday.

The acquisition is expected to close in 2017, the companies said in a joint statement.

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