[ad_1]
Chinese e-commerce giant JD.com is in advanced talks to acquire German electronics retailer Ceconomy in a deal that could value it at 2.2 billion euros (£1.9bn), Ceconomy confirmed, as the Chinese company looks to expand in Europe.
JD.com is considering an offer of 4.60 euros in cash for each Ceconomy share, Ceconomy stated, representing a 23 percent premium on its closing price on Wednesday, the first full day of trading before the offer was announced.
But Ceconomy said no binding offer had been signed and it was not certain any firm offer would be made.
Physical network
JD.com is reportedly in talks with the retailer’s major shareholders, including the Kellerhals family and the Duisberg family holding company Franz Haniel, whose approval would be required for any deal to go through.
Smaller shareholders include Meridian, Beisheim and Freenet, while approximately 33.6 percent of the Frankfurt-listed company’s shares are traded on the open market.
Ceconomy operates the electronics chains MediaMarkt and Saturn on the European continent, and the founding family of MediaMarkt and Saturn, the Kellerhals family, owns nearly 30 percent of Ceconomy shares through the financial vehicle Convergenta, making it the largest single shareholder.
The Franz Haniel holding company holds about 17 percent.
Buying Ceconomy would give JD.com access to a network of about 1,000 stores in several European countries, with a staff of about 50,000.
In February of last year JD.com said it was considering a bid for UK electronics retailer Currys, but ultimately no offer was made.
International expansion
The Beijing-based company began in 1998 as an online white goods seller and maintains a key focus on electronics sales.
It acquired domestic electronics chain Five Star Appliance in 2020 in order to explore the integration of online and offline retail.
The company has been seeking expansion in other markets amidst sluggish growth domestically.
[ad_2]
Source link
