India’s third largest e-commerce company Snapdeal ended merger talks with the country’s largest online marketplace Flipkart after opting to remain independent, Reuters reported.
The rejection comes just days after the board of Jasper Infotech, Snapdeal’s parent company, approved Flipkart’s bid of between $900 million and $950 million. Sources said at the time the deal could face opposition from smaller Snapdeal shareholders, which also needed to approve the move.
“The company has decided to pursue an independent path and is terminating all strategic discussions,” Snapdeal said in a statement.
According to Reuters, founders Kunal Bahl and Rohit Bansal were considering an alternate path.
Following months of talks, Flipkart sweetened its initial offer in mid-July after Snapdeal turned down its first takeover offer of $700 million to $750 million.
In May, Snapdeal’s founders and early investor Nexus reached a tentative deal brokered by SoftBank to sell the e-commerce company to Flipkart. SoftBank invested nearly $2 billion in Snapdeal, making it one of the Japanese company’s largest investments in India.
