FILE: MediaMarkt store at El Boulevard in Vitoria, Spain, 2020. Photo: Zarateman / Wikimedia Commons, CC0; cropped and resized.
JD.com completed its takeover offer for Ceconomy on Thursday, paying EUR 1.335 billion for a 59.8% stake in the European electronics retailer, the company announced.
The deal gives JD.com control of the company behind the MediaMarkt, Saturn and MediaWorld brands. Ceconomy is now a JD.com subsidiary, and its financial results will be included in JD.com’s accounts starting November 12.
The offer paid EUR 4.60 in cash per share through JD.com’s indirect subsidiary Jingdong Holding Germany. JD.com said all conditions for completion had been met, including merger, foreign-investment and European Union foreign-subsidies clearances.
Retail Brands and Workforce to Remain
Ceconomy operates more than 1,000 consumer electronics stores in 11 markets and employs more than 50,000 people, according to the announcement.
JD.com said Ceconomy would remain a stand-alone business in Europe with an independent local technology system. It said no changes were planned to the workforce, employee agreements or sites.
For shoppers and staff, that means the immediate plan is to keep the familiar brands and existing operations, while using JD.com’s technology and logistics to develop the business. Those are the companies’ plans, not a guarantee of future results.
Source: JD.com’s November 12 company announcement.
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