JD.com Launches Bid for European Electronics Retailer Ceconomy

By priyashah | World-Today-News.com

October 26, 2024

Chinese e-commerce behemoth JD.com has officially submitted a public bid for Ceconomy AG, the parent company of German electronics retailers Media Markt and Saturn, according to MTI.

JD.com’s subsidiary, Jingdong Holding Germany GmbH, is offering €4.60 per share to Ceconomy’s shareholders. The Kellerhals family, Ceconomy’s largest shareholder with a 29.2 percent stake, has agreed to sell a portion of its shares, including 3.81 percent offered by the family itself. JD.com has also secured agreements with othre major shareholders representing a total of 31.7 percent of the company’s stock.

Ceconomy operates over a thousand stores across 11 European countries. In the 2023/24 fiscal year, the company reported sales of €22.4 billion, with nearly a quarter generated from online sales.

JD.com stated that the transaction will not result in redundancies or store closures. Existing employee agreements, collective bargaining contracts, and internal supervisory structures will remain unchanged for at least three years. JD.com, a leading technology and service company in the Asian market, boasts annual revenues close to $159 billion in 2024 and has been listed on the Nasdaq for over a decade.

The domestic electronics market, while facing economic challenges, is experiencing meaningful growth in services, online sales, and logistics. In Hungary, Media Markt Kft.’s traffic has steadily increased in recent years:

• 2022: 182.6 billion forints
• 2023: 184.2 billion forints
• 2024: 191.7 billion forints

While profits have not been outstanding, they have remained positive, with last year’s tax profit nearing HUF 1 billion.

the “Home Start” program, expected to boost household appliance purchases as many individuals move into new homes, is anticipated to benefit Ceconomy at the end of 2025 and particularly in 2026. Media Markt’s omnichannel strategy, encompassing both online and offline sales, is projected to see stronger performance in both segments in 2026, bolstered by major sporting events like the Olympics.

While the Italian Winter Olympics may not considerably impact Hungarian television viewership and subsequent TV purchases, the upcoming events in the United States, Canada, and Mexico are expected to drive demand for large-screen televisions.

Despite these positive indicators, the trend of “down purchasing,” where Hungarian consumers prioritize lower prices, remains a significant factor in the market.

This article provides data on business transactions and market trends.It dose not constitute financial, legal, or health advice.

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