E-commerce giant JD.com ponders potential acquisition of MediaMarkt and Saturn retail chains
JD.com, the Chinese e-commerce giant, is reportedly in advanced negotiations with Ceconomy, the parent company of German electronics retail chains MediaMarkt and Saturn, regarding a potential takeover [1][3].
The proposed deal, valued at approximately €2.2 billion ($2.58 billion), would see JD.com offering Ceconomy shareholders €4.60 per share for their common stock [1][4][5]. This offer is yet to be finalized, with no binding agreements signed between the two parties.
Ceconomy, in a statement, confirmed the advanced talks but emphasized that it is not certain whether this will result in a formal takeover bid [1][3]. Major shareholders of Ceconomy, including the Haniel family and descendants of MediaMarkt’s founder, who collectively hold a significant portion of shares, must approve any takeover [1].
The founding family of Media Markt and Saturn holds around 30 percent of the shares through their financial vehicle Convergenta. However, no details about their response to the potential takeover offer have been disclosed.
The takeover talks come amidst past rumours of MediaMarkt and Saturn being targeted by Asian entities for a takeover [2][3]. Ceconomy's largest shareholder, Kellerhals, and smaller shareholders Meridian, Beisheim, and Freenet have declined to comment on the matter [2].
If the deal goes through, it would mark a significant expansion for JD.com in the European market, adding two well-established retail chains to its portfolio. The outcome of the negotiations is eagerly awaited by both parties' stakeholders.
[1] ntv.de [2] RTS [3] Reuters [4] Bloomberg [5] Financial Times
Community policy should be addressed in light of the potential acquisition, ensuring a seamless transition for both companies. Vocational training programs may be considered for employees to adapt to any changes in business operations following the industry merger, supported by the necessary financing.
