Chinese giant JD.com sets its sights on MediaMarkt (again)

JD.com, one of China’s largest e-commerce companies, is showing renewed interest in Ceconomy. Talks about an acquisition of the owner of electronics chains MediaMarkt and Saturn previously took place in 2023 and are now said to have resumed.

Chinese fallback market

JD.com has reportedly approached the German retailer and its major shareholders about a possible acquisition deal, anonymous sources told Bloomberg. Düsseldorf-based electronics group Ceconomy has over a thousand MediaMarkt and Saturn stores across Europe and its market value is currently around 1.5 billion euros.

JD.com is looking for foreign expansion opportunities, as the Chinese market is cooling down. A possible Ceconomy acquisition would give the company direct access to a strong retail network in Europe, which would allow it to more easily distribute low-cost Chinese products. JD.com’s pricing strategy also fits well with MediaMarkt and Saturn’s competitive price image.

Complex balance of power

This is not JD.com’s first attempt to gain a foothold in the European market: there already was speculation about the Chinese giant’s interest in Ceconomy in 2023. JD.com is also said to have previously considered a takeover of British electronics chain Curry’s, but the e-commerce group eventually abandoned the idea.

A possible Ceconomy takeover is complicated by that company’s complex shareholder structure. Three families (Haniel, Beisheim and Schmidt-Ruthenbeck) own about a third of Ceconomy – the Haniel family, which holds 16.7 % of the shares, is particularly seen as a crucial link in the negotiations. In addition, the descendants of MediaMarkt founder Erich Kellerhals own nearly 30 % of the shares, making them a second power block that JD.com needs to get past.