China's JD.com eyes takeover of German electronics giants
FRANKFURT : Chinese e-commerce giant JD.com is in talks to take over two German electronics retailers, their owner said Thursday, in a €2.2 billion (US$2.59 billion) deal that would boost the Chinese group's presence in Europe.
MediaMarkt and Saturn have a network of more than 1,000 stores, many of them in Germany but also in several other European countries, as well as online sales platforms.
The retailers' owner, a group called Ceconomy, said in a statement it was 'in advanced negotiations' with the Beijing-based shopping platform about the Chinese group possibly taking it over.
JD.com was considering a cash offer that would value the German group at around €2.2 billion (US$2.6 billion), it said. Ceconomy's share price surged around 14% on the Frankfurt Stock Exchange on the news.
The Duesseldorf-based group however said in a statement that 'no legally binding agreements have been signed so far.
'At present, it is therefore not foreseeable for Ceconomy whether a takeover offer will actually be made or not.'
JD.com already has operations in Europe, including through an online retailer called Ochama. But taking over Ceconomy would greatly expand its presence on the continent.
However, previous attempts by Chinese companies to take over, or take a stake in, German businesses have sometimes run into opposition, with some deals blocked on national security grounds in recent years.
Chinese online giants have also run into problems with the European Union in recent years. The European Commission said last month that AliExpress must do more to protect consumers from illegal sales, potentially opening the way for the online retailer to face a fine.
Brussels is also looking into Chinese-founded fashion giant Shein and shopping app Temu over risks linked to illegal products.
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