China's JD.com to acquire German electronics giant MediaMarkt & Saturn

The Chinese online group JD.com wants to take over the Düsseldorf-based electronics retailer Ceconomy, which operates the Mediamarkt and Saturn stores. The two companies announced on Wednesday evening that a corresponding “investment agreement” had been concluded. According to the agreement, JD has made an offer to purchase shares at €4.60 per common share, which, according to Ceconomy, is approximately 43 percent more than the average share price over the past three months. This values the company at €4 billion.

‍

‍

Ceconomy's executive board and supervisory board support the deal, and major shareholders Haniel, Beisheim, Freenet, and Convergenta have agreed to sell 32 percent of their shares. Convergenta, the investment company of the Kellerhals family, founders of Ceconomy, will retain a stake of just under 25.4 percent, according to the announcement.

‍

Under the agreement, JD guarantees that Ceconomy will remain an “independent company” after the takeover. There are “no plans to enter into a control and/or profit transfer agreement” for a period of three years. Existing works agreements and collective bargaining agreements are also to remain in place for at least three years. There are to be no redundancies or site closures for operational reasons.

‍

Ceconomy operates 1,030 Mediamarkt and Saturn stores in several European countries and is also active in online retail. In the 2023/24 fiscal year, the group reported sales of €22.4 billion, 23.6 percent of which came from online business. The company employs 50,000 people worldwide.

‍

‍

The Beijing-based online retailer JD.com is now set to support Ceconomy in expanding its digital business. The IT systems of the two companies are to remain “strictly” separate. According to its own statements, the Chinese group also wants to establish a European technology platform “outside China.”

‍

The Verdi service union called on JD.com to take social responsibility for its employees. Corinna Groß, federal sector head for retail at Verdi, emphasized that a viable concept for the future and investments in stores and brick-and-mortar retail are needed.

‍

‍