Moneycontrol
Jun 19, 2017 08:50 PM IST | Source: Moneycontrol.com

Tussle over subsidiaries delaying Flipkart-Snapdeal merger: Sources

Snapdeal feels that Flipkart should add USD 150-200 million for Vulcan and Unicommerce to the current valuation of USD 1.1 billion.

The Flipkart-Snapdeal merger has been delayed as there are differing views over subsidiaries Vulcan Express and Unicommerce, sources have told CNBC-TV18.

Vulcan Express is Snapdeal's logistics arm while Unicommerce is its commerce firm.

The boards of Snapdeal and Flipkart are expected to meet soon to finalise an agreement. According to sources, the current bone of contention is the valuation.

Flipkart wants the two subsidiaries Vulcan Express and Unicommerce to be included in the deal. However, Snapdeal feels that Flipkart should add USD 150-200 million for Vulcan and Unicommerce to the current valuation of USD 1.1 billion.

Snapdeal also open to de-merging the two firms and selling it separately. The issues are likely to be ironed out later this week.

The merger is expected to take at least four months inclusive over regulatory approvals.

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