Retail giant MediaMarkt's parent company receives acquisition proposal from Chinese firm - Chinese Enterprise Proposes Acquisition of Media Market's Mother Company
In a strategic move to expand its presence in Europe, Chinese e-commerce giant JD.com has agreed to acquire a nearly 32% stake in Ceconomy, the parent company of MediaMarkt and Saturn. This takeover offer values Ceconomy at around €2.2 billion, with JD.com offering €4.60 per share, a premium roughly 23-43% above recent share prices.
Share Distribution and Key Shareholders
The investment fund of the Kellerhals family, Convergenta, and Ceconomy's largest shareholder, will sell only a limited portion of its shares to JD.com and will retain approximately 25.35%-25.4% ownership post-offer. Together, JD.com and Convergenta will hold about 57.1% of Ceconomy shares, establishing majority control. Other major shareholders like the Haniel family, Beisheim investment company, and Freenet are exiting completely, selling all their shares to JD.com.
Company Background and Strategic Context
Ceconomy operates Europe’s leading consumer electronics chains, MediaMarkt and Saturn. JD.com, with an annual turnover of around 159 billion US dollars, is a globally leading technology and service company with a supply chain as its core and China's largest retailer by revenue.
The acquisition aims to accelerate Ceconomy’s expansion and omnichannel strategy in Europe, leveraging JD.com’s technology and retail expertise. Both companies have committed to no layoffs, no store closures, unchanged management, and preservation of current organizational structures for at least the next three to five years. JD.com has also stated it will preserve Ceconomy’s operational independence and not impose domination or profit and loss transfer agreements.
Regulatory Approval and Future Prospects
The acquisition is subject to regulatory approvals, including merger control, foreign investment rules, and compliance with EU Foreign Subsidies Regulation. If approved, this strategic takeover could transform European electronics retail while maintaining stability in Ceconomy’s workforce and operations.
Ceconomy is present in more than 1,000 markets in eleven European countries. Since the beginning of the year, Ceconomy's stock has gained over 60 percent due to ongoing takeover speculation. The stock price of Ceconomy currently stands at 4.35 euros per share, a rise in anticipation of the takeover offer from JD.com.
[1] Reuters, "JD.com to buy 31.7% of Ceconomy, Europe's No. 1 consumer electronics retailer," Reuters, 2023. [2] Financial Times, "JD.com to buy stake in Ceconomy, Europe's biggest consumer electronics retailer," Financial Times, 2023. [3] Bloomberg, "JD.com to Buy Stake in Ceconomy, Europe's Biggest Consumer Electronics Retailer," Bloomberg, 2023. [4] Ceconomy AG, "Press Release: JD.com to acquire a stake in Ceconomy AG," Ceconomy AG, 2023.
- The acquisition of a significant stake in Ceconomy by JD.com, a leading technology and service company, is expected to leverage technological advancements and retail expertise, thereby accelerating Ceconomy's expansion and omnichannel strategy in Europe.
- JD.com, with its focus on preserving operational independence and lack of intent for profit and loss transfer agreements, aims to maintain stability in Ceconomy’s workforce and operations while fostering growth, following the regulatory approvals of the strategic takeover.
