Chinese corporation aims to purchase MediaMarkt and Saturn retail chains - Giant Chinese corporation poised to dominate Media Market and Saturn retail sectors.
In a significant move, Chinese e-commerce giant JD.com has launched a voluntary public takeover offer to acquire Ceconomy AG, the parent company of MediaMarkt and Saturn. The offer values Ceconomy at approximately €2.2 billion ($2.5 billion) with an offer price of €4.60 per share in cash.
The bid represents a 43% premium to the recent average share price, and key shareholders holding approximately 32% of Ceconomy’s shares, including Haniel, Beisheim, Freenet, and Convergenta, have already committed to accept the offer.
Ceconomy’s management and supervisory boards support the acquisition proposal. JD.com has agreed not to impose domination or profit-and-loss transfer agreements, ensuring Ceconomy’s operational independence post-acquisition. Ceconomy’s CEO expects the deal to be completed in the first half of 2026, pending regulatory and shareholder approvals.
The partnership aims to leverage JD.com’s technology, omnichannel retail, and logistics expertise to accelerate Ceconomy’s growth as a leading European consumer electronics platform.
Current Status
JD.com’s bid is currently active, supported by significant shareholders and management, with an anticipated closing timeline within the next year. Notably, JD.com has already secured a majority of 57.1% in Ceconomy.
If the deal goes through, two anchor tenants of the German and European pedestrian zones would fall into Chinese hands. JD.com could gain access to an extensive European logistics network and two established retail brands with millions of customers through a takeover of Ceconomy.
Ceconomy's Turnaround and Future Prospects
Ceconomy returned to profitability in 2024, posting revenues of 22.4 billion euros. For the 2024/25 fiscal year, Ceconomy expects an adjusted profit of 375 million euros. The company's successful transformation, led by former CEO Karsten Wildberger, has generated attention, with Wildberger himself pointing to the turnaround amidst takeover rumors.
Wildberger, now serving as Digital Minister, had previously pushed for an omnichannel strategy and modernized electronics markets. The Kellerhals founding family, who hold a 29.2% stake in Ceconomy, have accepted an offer for 3.81% of their shares.
JD.com's European Expansion
JD.com is planning an expansion into Europe, aiming to reduce dependence on the Chinese market. The company started as an operator of stationary businesses for electronics products in Beijing at the end of the 90s. Unlike competitors like Alibaba, the company has built its own network of logistics centers.
Previous attempts at European expansion, such as the planned acquisition of the British electronics retailer Currys in 2024, have not materialised. However, with the potential acquisition of Ceconomy, JD.com may finally establish a significant foothold in Europe.
For more information about Ceconomy's strategy and turnaround, visit www.stern.de/capital.
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- In the proposed acquisition, JD.com aims to incorporate Community policy and Employment policy from Ceconomy, ensuring a smooth transition and alignment of their practices.
- To further accelerate growth and gain a competitive edge in Europe, JD.com intends to leverage the latest technology in its strategies, combining it with Ceconomy's retail expertise and omnichannel capabilities.
