After 6 months of negotiations, Snapdeal-Flipkart deal may fall apart

Efforts towards Snapdeal’s sale to Flipkart may hit a dead end after six months of negotiation. The crucial meeting between the two parties to seal deal has been reportedly called off.

As per reports, the meeting between Snapdeal and Flipkart, scheduled for Monday and Tuesday, to discuss the merger has been cancelled.

The law firms of both the online marketplaces were scheduled to close the transaction. Law firm J Sagar Associates and banker Credit Suisse, which are representing Snapdeal in the negotiations, were to meet Khaitan & Co and Goldman Sachs.

"The two co-founders have said they will vote in favour of Snapdeal going forward as a smaller, but independent entity, terming it 'Snapdeal 2.0'," one of the sources told ET.

The latest developments come after Snapdeal sold its digital payments platform FreeCharge to Axis Bank for Rs 385 crore.