China Buy Mediamarkt through JD.com through the largest retailer in Europe, Ceconomy
The Chinese company JD.com has reached an agreement with the main Shareholders of Ceconomy, electronic chains matrix Mediumkt and Saturnto acquire a close participation to 32 % of the capital. The operation is part of a broader strategy, which looks towards the possible complete acquisition of the company in the future.
Among the shareholders involved is convergeant, the investment fund of the Kellerhaus family and current Greater Ceconomy shareholder. Although it will sell a limited part of its participation, it will retain 25.35 %. With the entrance of JD.com, both groups will jointly control the 57.1 % of the company.
JD.com offers a 23 % premium on the value of the shares
The rest of the major shareholders, the Haniel family, the investment firm Beisheim and the Freenet operator, have decided to completely abandon capital. JD.com has offered 4.6 euros per sharewhich represents a premium of the 23 % on the price of shares A week before the ad. The operation values Ceconomy in 2.2 billion euros.
The CEO of Ceconomy, Kai-Ulrich Deissner, has justified the agreement with a clear message: “Stay still is not an option”. As stated, the alliance with JD.com will allow not only to follow the rhythm of the changes in European retail trade, but also to lead that transformation. Obviously, in the point of sight is Amazon, which has a dominant position in our market.
Something relevant is that both companies have promised that There will be no layoffs or store closures. The current organizational structure and the management of the company will also be maintained, at least for the next five years. In addition, the employee participation and consultation model will be respected for a minimum of three years. Therefore, in the short term radical changes are not foreseen in Mediamarkt and the rest of the Ceconomy companies.
