JD.Com looks at Ceconomy
Media Markt parent sparks interest in China
November 15, 2023, 3:06 p.m
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The trading group Ceconomy has apparently come into the focus of the Chinese online retailer JD.Com. There is no confirmation from the participating or other major shareholders. Nevertheless, the news awakens the imagination of investors who buy the shares.
Speculation about a takeover by the Chinese online retailer JD.Com is driving up the shares of the electronics retail holding Ceconomy. According to a report in “Manager Magazin”, the Internet giant has put out feelers to the parent of the retail chains Media Markt and Saturn. There are already discussions with Ceconomy shareholder Haniel. The Duisburg family holding company remained silent and did not want to comment on the report. According to the shareholder structure on the website, Haniel holds 16.7 percent of Ceconomy.
Other major shareholders have not yet had any contact with JD.Com. “JD.Com has not asked us about our share,” said a Freenet spokeswoman. Freenet holds around 6.7 percent of Ceconomy shares. A spokesman for shareholders Beisheim and Meridian said they do not comment on rumors. There was no immediate comment from JD.Com. The Meridian Foundation has 11.1 percent and the Beisheim Foundation has 4.8 percent of the voting shares.
The largest individual shareholder in Ceconomy is the Kellerhals family’s Convergenta company with almost 30 percent. There was initially no comment from her either. There had been repeated takeover speculation in the past about Ceconomy and the holding’s French holding, Fnac Darty. According to insiders, Ceconomy itself had considered swallowing the French electronics retail chain in the past.
Discussions since summer – outcome unclear
“Manager Magazin” reported, citing insiders, that talks between JD.Com and Haniel had been going on since the summer. Deutsche Bank is involved as an advisor. However, it remains uncertain whether the talks will be concluded in the coming months.
Ceconomy became independent in 2017 and the then Metro group was split up. At that time, the company started with a price of 9.32 euros per share. On Wednesday afternoon, the shares were worth 2.36 euros, an increase of more than 15 percent compared to the previous day’s closing price. Ceconomy boss Karsten Wildberger announced in the summer that he wanted to return to the growth path.
After the first nine months of the 2022/23 financial year, Ceconomy reported a loss of 105 million euros on sales of 16.9 billion euros. The chain operates around 1,000 stores in Europe with over 42,000 employees.