Amazon gains huge foothold in Middle East
Amazon has completed its acquisition of e-commerce company souq.com, a leader in the Middle East's online shopping market. The deal, which was initially announced in March, closed for $580 million in cash, according to filings with the United States Securities and Exchange Commission.
And the companies are wasting no time in joining forces. The retailers have already completed an initial integration that allows customers to log into Souq.com using their Amazon account credentials. Next, they plan to integrate products and services between the two sites to leverage their respective scale, according to TechCrunch.
“Joining the Amazon family will enable us to drive further growth, benefit from their technological investment, offer an even wider product selection through worldwide sourcing, deliver an enhanced customer service experience, as well as continue Amazon's great track record of empowering sellers locally and globally,” said Ronaldo Mouchawar, CEO and co-founder of souq.com.
Of course, the deal also gives Amazon a firm presence in the growing and competitive Middle Eastern e-commerce space. Souq.com features more than 8.4 million products across 31 categories, including consumer electronics, fashion, health and beauty, household goods, and baby. The Middle Eastern retailer also attracts over 45 million visits per month, with localized operations in the KSA, UAE and Egypt.
"Amazon and Souq.com share the same DNA— we’re both driven by customers, invention, and long-term thinking,” said Russ Grandinetti, Amazon senior VP, international consumer.
"Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers,” he added. “We're looking forward to both learning from and supporting them with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East.”
The deal comes on the heels of Amazon’s recent high-profile acquisition of Whole Foods. The online giant purchased the natural foods grocer in June for $13.7 billion.
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