Amazon, a global e-commerce leader, today announced that it has reached an agreement to acquire Souq.com, an e-commerce leader in the Middle East.

Joining the Amazon family will enable Souq.com to continue growing while working with Amazon to bring even more products and offerings to customers worldwide, said a statement.

The move follows an Emaar Malls statement on Sunday that it has submitted a $800 million bid for Souq.com. The bid is in line with its strategy to align e-commerce with physical shopping, it said clarifying media reports published earlier.

The Amazon statement did not give any financial details of the deal. However, earlier reports said deal could be valued at as much as $650 million.

“Amazon’s entry into the region reflects the visionary foresight of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, who launched Dubai Internet City in 1999 and adopted the e-commerce and online business legislation of 2002," said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. "Furthermore, it reiterates Dubai’s position as a regional and global hub for the world’s biggest and leading organizations, fostering in its ecosystem that amalgamates the brightest minds, talent, thought leaders, entrepreneurs and investors from around the world.”

"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.

"Souq.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. 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."

"We are guided by many of the same principles as Amazon, and this acquisition is a critical next step in growing our e-commerce presence on behalf of customers across the region," said Souq.com CEO and Co-Founder Ronaldo Mouchawar. "By becoming part of the Amazon family, we'll be able to vastly expand our delivery capabilities and customer selection much faster, as well as continue Amazon's great track record of empowering sellers."

Subject to closing conditions, the acquisition is expected to close in 2017, the statement said. - TradeArabia News Service