Upcoming Media Market Saturn-Mother Acquisition by Chinese JD Corporation
In a significant move for the European retail landscape, the Chinese e-commerce giant JD.com is set to acquire a majority stake in Ceconomy, the parent company of MediaMarkt and Saturn. This acquisition, valued at around four billion euros, marks JD.com's first foray into the German market.
Ceconomy, with its extensive network of over 1000 stores across eleven European countries, is no stranger to the continent. Approximately half of these stores are located in Germany, where the company operates a nationwide branch network both online and offline under the brands MediaMarkt and Saturn.
The acquisition, however, is not yet complete. The authority is still examining the competition law aspects of the mergers and acquisitions. The Federal Economics Minister Katharina Reiche of the CDU could potentially block the deal if there are any security policy concerns.
JD.com, the largest retailer by revenue in China, reported approximately 159 billion US dollars (134.3 billion euros) in revenue in 2024. Primarily focusing on online trading and e-commerce logistics, the company is currently only represented in Europe to a limited extent, with online shops under the brand joybuy.
Ceconomy, in the 2023/24 financial year, achieved a turnover of 22.4 billion euros. At the end of September 2024, the company employed around 50,000 people worldwide, with around 17,000 in Germany. Around a quarter of Ceconomy's turnover comes from online trading.
The current head of the German Federal Cartel Office (Bundeskartellamt), who approved the takeover of Ceconomy by JD.com, is Andreas Mundt. The Federal Cartel Office has already approved the acquisition, having no competition law concerns about the deal.
While the takeover is not yet complete, the potential acquisition of Ceconomy by JD.com promises to bring a significant shift in the European retail industry, with the Chinese e-commerce giant set to make its mark in Germany for the first time.
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