It was supposed to be the biggest merger in the Indian e-commerce sector, but it may not happen after all.
The buyout of e-retailer Snapdeal by rival firm Flipkart has hit an unexpected snag after the family office of billionaire Azim Premji, one of the early investors in Snapdeal, wrote to its board objecting to special payouts for the founders and two larger investors, Kalaari Capital and Nexus Venture Partners.
Bloomberg reported that the Wipro founder who is a small investor in Snapdeal told the board in a letter that the US$90 million to be handed to this select group of early Snapdeal shareholders and founders isn’t acceptable.
Another US$30 million in special payments proposed by the Snapdeal board for the employees, on the other hand, is okay.
The two companies struck a preliminary agreement last month but the talks have bogged down over how Snapdeal’s investors and employees will be compensated.
The disagreement imperils a deal that was meant to slow Amazon.com’s growth in India by combining to create a strong local competitor. Amazon Chief Executive Officer Jeff Bezos has pledged to spend US$5 billion in the country to gain share as the market surges.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
French Prosecutors Open Investigation into X’s Algorithmic Bias
Feb 8, 2025 by
CPI
Meta Urges US Appeals Court to Uphold $725 Million Privacy Settlement
Feb 8, 2025 by
CPI
UnitedHealth Group Withdraws Motion to Dismiss Antitrust Challenge
Feb 8, 2025 by
CPI
Tech Firms Raise Alarm Over Ex-Amazon Exec Leading UK Competition Regulator
Feb 8, 2025 by
CPI
US Consumers File Lawsuit to Block Nippon Steel’s Acquisition of US Steel
Feb 8, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Criminal Enforcement
Jan 23, 2025 by
CPI
The Antitrust Division’s Recent Work to Combat International Cartels
Jan 23, 2025 by
Emma Burnham & Benjamin Christenson
Information Sharing: The New Frontier of U.S. Antitrust Enforcement
Jan 23, 2025 by
Brian P. Quinn, Casey Kovarik & Michael Tubach
The Key Role of Guidelines on Exchanges of Information Among Competitors and the Divergent Transatlantic Paths
Jan 23, 2025 by
Rosa Abrantes-Metz & Albert Metz
Leniency, Whistleblowers, and Compliance
Jan 23, 2025 by
Richard Powers, Tara O’Malley & Cory Gordon