JD.com in talks to buy German electronics retailer Ceconomy for €2.2bn
MediaMarkt owner in ‘advanced negotiations’ with Chinese ecommerce group
Chinese ecommerce giant JD.com is in “advanced negotiations” to buy Ceconomy in a deal that would value the German electronics retailer’s equity at about €2.2bn.
The German owner of MediaMarkt and Saturn said JD.com was considering a cash offer of €4.60 per share in a statement on Thursday confirming an earlier report by Bloomberg.
The bid would represent a 23 per cent premium to Ceconomy’s closing share price on Wednesday. The German company’s shares rose 14 per cent following the statement on Thursday afternoon.
Ceconomy said “no legally binding agreements” had yet been signed, adding that it remained unclear whether an offer would ultimately be made. JD.com declined to comment.
The potential acquisition would mark a renewed effort by JD.com to expand outside of China, where it faces fierce competition from domestic rivals Alibaba and Meituan, and weakening consumer demand. JD.com explored a bid for UK-listed electronics retailer Currys last year, before ultimately walking away in March 2024.
JD.com has previously expressed early-stage interest in Ceconomy, according to people familiar with the matter.
One of the people said Ceconomy could benefit from JD.com’s knowhow in logistics and supply chain management to boost its own ecommerce strategy. JD.com already operates logistics hubs in several European countries including France, Poland and Germany.
Ceconomy runs more than 1,000 stores across Europe under its MediaMarkt and Saturn brands, and generated sales of €5.2bn in the three months to the end of March.
Major shareholders of Ceconomy include the holding company of the Kellerhals family, who founded MediaMarkt, as well as Germany’s wealthy Haniel family. In May, Ceconomy’s former chief executive Karsten Wildberger became Germany’s first federal minister for digital affairs.
This article has been amended since publication to correct Ceconomy’s quarterly sales figure.