The Chinese e-commerce giant JD has taken a major step forward in its takeover of Europe’s largest electronics retailer, MediaMarktSaturn. The total stake held by the Chinese company in its parent corporation, Ceconomy, has now reached 70.9 percent, Ceconomy announced in DΓΌsseldorf after the close of an initial acceptance period. A second period is now running until the end of Novemberβby which time the share is expected to increase further.
The share package now controlled by JD includes a 25.4 percent stake from Convergenta. This is the investment company of the founding Kellerhals familyβthis entity remains a shareholder but has contractually agreed to vote alongside JD in the future. Therefore, this share package is counted as an indirect stake of JD.
However, the takeover is not yet final. While the German Federal Cartel Office has already approved the deal, approval is still pending from the Federal Ministry for Economic Affairs and other EU member state governments that scrutinize foreign investments. Additionally, the European Commission is still examining whether JD is subsidized by the Chinese government, which could potentially distort competition in Europe. If all concerns can be resolved, the takeover is expected to be completed by mid-2026.
The Scale of Ceconomy and JD
In the fiscal year ending in September, Ceconomy generated revenue of β¬23.1 billion. Excluding exchange rate fluctuations and portfolio effects, this represented an increase of 5.7 percent. Business recently picked up somewhat, with revenue growth reaching seven percent in the fourth quarter, according to the reports. Preliminary calculations for the 2024/25 fiscal year indicate that earnings before interest and taxes (EBIT), adjusted for special effects, rose by approximately one quarter to β¬380 million.
The first Saturn store opened in Cologne in 1961, and the first MediaMarkt opened in Munich in 1979. The retail chain acquired its competitor Saturn in 1990. Several years later, Metro AG held a majority stake in both brands. The trading company Ceconomy, to which the MediaMarktSaturn Retail Group now belongs, was formed in 2017 as a spin-off from Metro.
JD is larger than Ceconomy, with the company reporting revenue of approximately β¬137 billion in 2024. The firm is headquartered in Beijing and has been listed on the US Nasdaq stock exchange for over a decade. Its competitors in the Chinese domestic market include Alibaba and Pinduoduo. In Europe, JD has so far operated on a limited scale, for instance through online stores under the joybuy brand.
Sources: mik/dpa
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