Following the takeover by Ceconomy, JD.com contemplating another massive business acquisition.
In a significant development, JD.com, the Chinese e-commerce giant, has expressed interest in acquiring Argos, the second-largest general merchandise retailer in the United Kingdom. This potential move aligns with JD's previous attempt to expand into the UK last year.
The planned acquisition is still pending approval from European authorities and is expected to be completed next year. The potential acquisition price of Argos has not been disclosed.
JD.com is using its cash flow to continue expanding in Europe, and this move is seen as a strategic one given the weak domestic trade in China. Sainsbury's, Argos' current parent company, believes that JD would bring in top-notch expertise in retail, technology, and logistics.
Sainsbury's recently valued Argos at £344 million in its quarterly results, but it's likely that the supermarket chain would incur a significant loss from the sale. It's important to note that Sainsbury's acquired Argos' former parent company Home Retail in 2016 for £1.1 billion.
Argos operates the third most visited retail website in the UK and has over 1,100 pick-up points. This expansion would provide JD with a strong foothold in the UK market, complementing its existing presence in Europe.
JD aims to invest in Argos to drive its growth and further transform the customer experience. The British supermarket chain Sainsbury's has announced plans to sell Argos, but no agreement has been reached yet between the two parties.
Investors are buying into JD.com's European expansion strategy, with the AKTIONÄR's 'China-Knaller 2.0' report suggesting that JD's strategy of expanding in Europe is the right move. The report offers the chance to achieve 300% by the end of the year, along with two hot stocks.
However, for those who prefer a more speculative approach, the AKTIONÄR's report is a must-read. It's worth noting that JD made an offer for Currys, the largest electricals retailer in the UK, in the past, but that offer was withdrawn.
This potential acquisition would mark a significant step forward for JD.com in its quest to become a global e-commerce powerhouse. As the acquisition progresses, more details are expected to emerge, shedding light on JD's plans for Argos and the UK market.
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