Retail giant Mediamarkt is set for purchase by Chinese entities.
In a significant move for the European retail market, the Chinese e-commerce giant JD.com has been approved by the German Federal Cartel Office to acquire a majority stake in Ceconomy, the parent company of Media Markt and Saturn. The takeover, worth an estimated 4 billion euros, would see JD.com become the majority shareholder of Europe's largest electronics retailer.
Ceconomy operates a Germany-wide store network, as well as online retail, with more than 1,000 specialist stores in eleven European countries. In the 2023/24 financial year, Ceconomy generated sales of 22.4 billion euros, with just under a quarter attributed to the online business. The company employed around 50,000 people worldwide, including around 17,000 in Germany and 1,000 in Switzerland.
JD.com, with an annual turnover of almost 159 billion US dollars, is a leading global technology and services company with a supply chain at its core and China's largest retailer by revenue. The well-known strengths of JD.com are its own logistics and technological expertise. Currently, JD.com is not highly active in the German market, but its acquisition of Ceconomy would secure space for the company in European city centers, pending final approval from the Federal Ministry of Economics.
The Federal Cartel Office has stated that the merger between JD.com and Ceconomy has only a few competitive points of contact and does not give rise to any competition law concerns. However, political or security-related issues would fall under other authorities' jurisdiction. The Federal Ministry of Economics could potentially veto the deal for security policy reasons.
The takeover of Ceconomy by JD.com would significantly expand JD.com's presence in the European market. It represents a major investment by a Chinese e-commerce giant and could potentially have significant implications for the competitive landscape of the European retail market, particularly in the electronics sector.
JD.com is already active in Europe with the online stores Joybuy and Ochama, with Ochama soon to be merged into Joybuy. The acquisition of Ceconomy would add Media Markt and Saturn to JD.com's European portfolio, potentially giving the company a significant competitive edge.
Interestingly, Digitec Galaxus, a Swiss retailer, generated sales of just over 3 billion Swiss francs in 2024, putting it significantly ahead of Media Markt's sales in Switzerland. This suggests that JD.com's foray into the European market could face stiff competition, particularly in specific regions.
As the deal moves towards final approval, the European retail landscape is poised for a significant shift. The acquisition of Ceconomy by JD.com would mark a significant development in the European retail market, as it represents a major investment by a Chinese e-commerce giant. The outcome of the deal will be closely watched by retailers and consumers alike.
