JD.com Sets Sights on Europe as It Moves to Buy Ceconomy in $2.4 Billion Deal
By Bao Yunhong and Denise Jia
JD.com is making its boldest push yet into the European market. On Thursday, the Chinese e commerce giant announced plans to acquire all outstanding shares in Germany’s CeconomyAG, the parent company of electronics retailers MediaMarkt and Saturn, in a cash offer valuing the deal at about 2.2 billion euros ($2.5 billion).
Through its wholly owned subsidiary Jingdong Holding Germany GmbH, JD.com is offering 4.60 euros per share, a 43% premium to Ceconomy’s three month volume weighted average price and 23% above its July 23 close, before news of the potential takeover emerged. Shares rose to 4.41 euros Thursday, up 1.26%. Upon completion, Ceconomy would be privatized and delisted.
Based in Düsseldorf, Ceconomy operates 1,030 stores in 11 European countries and generated 22.4 billion euros in revenue in fiscal 2023/24, with online sales contributing 23.6%. Adjusted earnings before interest and tax reached 305 million euros. JD.com said the acquisition would accelerate Ceconomy’s transformation into a leading omnichannel electronics retailer in Europe while allowing it to maintain its independent operations.
The enterprise value of the transaction is estimated at 4 billion euros, far higher than its market capitalization, according to Ceconomy’s July 30 statement. JD.com declined to comment on the discrepancy.
JD.com has already secured significant shareholder backing. It signed an investment agreement with Ceconomy’s largest shareholder, Convergenta Invest GmbH, which holds 29.16% of the company. Convergenta has made an irrevocable commitment to sell 3.81% of its stake, or 18.5 million shares, to JD.com, contingent on the deal’s completion, and will retain a 25.35% stake afterward.
Several other shareholders have made similar commitments, giving JD.com support for 31.7% of Ceconomy’s shares. Combined with Convergenta’s remaining stake, JD.com has backing from 57.1% of shareholders ahead of the tender offer.
The acquisition is subject to approvals for merger control, foreign direct investment and foreign subsidies. JD.com expects the tender offer to close in the first half of 2026 and plans to finance the purchase with a mix of acquisition loans and existing cash.
The move underscores JD.com’s renewed focus on overseas expansion. The company shut down its Joybuy cross border export platforms in 2021 and paused operations in Indonesia and Thailand in early 2023. But it has invested in new European ventures, including its warehouse store hybrid brand Ochama in the Netherlands and a trial run of Joybuy in London in early 2025.
JD.com is also expanding in Hong Kong, offering a “best price guarantee” for local consumers and zero commission policies for merchants, while opening a new express delivery center. Its JD Worldwide business now reaches Southeast Asia, Japan, South Korea, and Australia, with a semi managed marketplace model similar to Temu and Shein targeting markets such as the U.S., Europe and Asia Pacific.
Founder Richard Liu said in June that international business is “the most important segment” for JD.com and that the company’s European infrastructure is largely in place after three years of preparation. JD.com aims to launch full e commerce operations in Europe by 2026.
Contact reporter Denise Jia (huijuanjia@caixin.com)
caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.
Image: Михаил Решетников – stock.adobe.com