Snapdeal rejects Flipkart acquisition deal; plans to walk alone ahead

Key highlights:

• Snapdeal walks away from merger talks with Flipkart
• Snapdeal now plans to its future as a standalone company
• To sell certain non-core assets

After over six months of negotiation the Flipkart's deal to acquire Snapdeal fell apart after the company walked away from the merger talks with Flipkart. The company now plans to its future as a standalone company and says its will sell certain non-core assets, according to a Reuters report.

The board of Jasper Infotech, which runs Snapdeal, had in-principle agreed to Flipkart`s revised buyout bid of up to $950 million and a deal was pending approval of smaller shareholders, Reuters reported last week.

This was a sudden twist in the merger deal which seemed all but complete as several media reports came out that the board of Snapdeal had approved the new offer of Flipkart to acquire it for around $950 million. Even Snapdeal co-founder Kunal Bahl had sent a letter to employees speaking about a new beginning for employees.

Snapdeal board approves Flipkart's $900-$950 million takeover offer, sources say