Chinese Online Giant Takes Over MediaMarkt: What This Means for Retail

The news came like a bolt from the blue, but it had been in the making: JD.com, China's largest private company by revenue and a giant in e-commerce, is making a voluntary public takeover offer to Ceconomy's shareholders. The offered price of 4.60 euros per share is a full 43 percent above the average price of the last three months before the talks became known, underscoring the Chinese company's determination to secure this strategic position. With a total volume of 4.4 billion euros, Ceconomy, a company with over 22 billion euros in annual sales and around 50,000 employees in eleven countries, is being re-evaluated.

JD.com has already secured the support of key major shareholders, including the Kellerhals family (founders of MediaMarkt), Haniel, Freenet, and the Beisheim Foundation, through which they will directly hold 31.7 percent of the shares. These shareholder agreements, particularly with Convergenta (Kellerhals family), are intended to ensure continuity and continue the "family legacy." This indicates a desire for a cooperative, non-hostile takeover that promises stability in change.

Future of Electronics Trade: Hybrid Models and Digital Power

Ceconomy, with its more than 1000 stores, is traditionally deeply rooted in brick-and-mortar retail, even though almost a quarter of sales are already generated online. The previous interim CEO Kai-Ulrich Deissner emphasized that stagnation is not an option in view of changing customer needs and market dynamics. This is where JD.com comes into play: The Chinese giant, which consciously positions itself in its home country as a counterpoint to low-cost providers like Temu, brings not only capital but above all extensive expertise in technology, logistics, and warehousing.

The partnership aims to expand Ceconomy's market position in Europe and drive its transformation forward. JD.com's strength in the digital sector and in the efficient supply chain could help Ceconomy develop a more powerful omnichannel model that optimally combines the strengths of brick-and-mortar retail with the advantages of online shopping. This is crucial at a time when customers increasingly expect seamless shopping experiences across all channels.

Employees and Locations: Commitments and Union Demands

A central point of the deal is JD.com's commitments to the workforce: There will be no compulsory redundancies and no site closures – at least for a period of three years. Existing company agreements, collective bargaining agreements, and corporate co-determination in the supervisory board are also to be maintained. Sandy Xu, the CEO of JD.com, assured that they are "firmly committed" to investing in the employees and the "unique culture of the company."

The union Verdi has acknowledged these commitments but demands long-term social responsibility and job security beyond the three-year period. Verdi's federal group leader Corinna Groß made it clear: "The company cannot position itself well for the future against the employees." She demands a viable future concept and investment commitments for the preservation of branches and brick-and-mortar retail to create a sustainable perspective for the employees.

The transaction, which is financed by JD.com's liquid funds and a loan, is expected to be completed in the first half of 2026, subject to all approvals. After the offer is completed, there are plans to delist Ceconomy from the stock exchange.

In the short term, no drastic changes are expected for customers. In the long term, customers could benefit from improved digital infrastructure, faster deliveries, and a broader product range, as JD.com brings in its technology and logistics expertise and aims to strengthen the online business.

JD.com is one of the largest online trading companies worldwide and is considered the most revenue-generating private company in China. It is known for its advanced logistics, direct sourcing from manufacturers, and focus on quality and branded products, as opposed to pure discount providers.

JD.com has committed not to issue compulsory redundancies or close sites for three years. However, the union Verdi demands further long-term commitments and a viable future concept for the preservation of jobs in brick-and-mortar retail, indicating uncertainty about the period after the three-year term.

This article has been automatically translated, read the original article here.