JD.com Secures European Electronics Foothold with Ceonomy Acquisition

Chinese E-commerce Giant Buys Control of MediaMarkt and Saturn Parent

China’s e-commerce titan, JD.com, has made a significant move into the European retail landscape, announcing its acquisition of Ceonomy, the German holding company that oversees electronics giants MediaMarkt and Saturn. This strategic purchase grants JD.com indirect access to prominent Italian tech retailers MediaWorld and Unieuro.

A Multibillion-Euro Deal Unlocks Vast Distribution Network

The transaction, valued at €2.2 billion, involves a public purchase offer at €4.60 per share. This acquisition provides JD.com with access to an extensive distribution network employing 48,000 individuals. The group boasts a turnover exceeding €22 billion for the 2023/2024 period and operates in eleven countries.

In Italy, where MediaWorld ranks as its second-largest market after Germany, the network encompasses 144 stores and employs 5,000 staff. The completion of this deal is anticipated in the first half of 2026, pending regulatory approval from European antitrust authorities. Experts suggest this move carries significant geopolitical implications, particularly for Italy.

JD.com’s Vertically Integrated Model Challenges Competitors

As the third-largest Chinese e-commerce player, JD.com, founded by **Richard Liu**, is known for its distinct operational strategy. Unlike competitors such as Alibaba and Temu, which utilize marketplace models, JD.com maintains direct control over its entire supply chain, from logistics to final delivery and the technological platform.

Domestically, JD.com operates over 820 warehouses and employs more than 323,000 logistics personnel, enabling optimized delivery times and cost reductions. This integrated model facilitates the accumulation of substantial user data, analyzed through its proprietary JD Pay platform, cloud solutions, and AI systems to predict consumer behavior.

The company’s app registered 569.3 million monthly active users in the first quarter of 2024, facilitating 78.5% of mobile transactions. JD.com has been accelerating its international expansion, establishing “Ochama” hybrid stores in the Netherlands and testing its “Joybuy” marketplace in the UK. Previously, the company considered acquiring the British electronics chain Currys before focusing on the more strategically vital Ceonomy acquisition.

Geopolitical Concerns Arise as China Deepens European Reach

This acquisition follows a pattern of gradual penetration by Chinese giants into the European market, including companies like TikTok, Huawei, and CATL. Beijing’s strategy appears focused on infrastructure control and network building rather than solely direct sales, often circumventing commercial disputes and regulatory hurdles.

JD.com has pledged to maintain Ceonomy’s “operational independence,” with no immediate changes to employee contracts or IT systems. However, without legally mandated restrictions, such autonomy is often considered temporary.

Italy Weighs “Golden Power” Activation Amidst Strategic Concerns

The Italian government, led by Prime Minister Giorgia Meloni, faces a critical decision regarding the activation of “Golden Power.” This legal instrument allows the government to block or condition foreign acquisitions in sectors deemed vital for national security. While Golden Power was not invoked for Fnac’s earlier acquisition of Unieuro, the context of a Chinese buyer may necessitate a different approach.

The central dilemma for Italy revolves around whether to impede Beijing’s economic advance without potentially straining relations with the White House. The concern is that JD.com’s deep integration of logistics, supply chain, and data analytics could provide China with significant insights into millions of Italian consumers’ habits and preferences.

This strategic move extends beyond mere commerce, establishing a significant outpost in Europe. The operation is viewed as a component of a broader geopolitical strategy aimed at controlling vital logistical and digital networks across the continent. Italy’s position in this scenario could prove to be a critical vulnerability in the European digital infrastructure.

A recent report indicated that global e-commerce sales are projected to reach $8.1 trillion by 2026, highlighting the increasing importance of controlling distribution networks. This trend underscores the strategic value of JD.com’s move into the European market.