JD.com back in hunt for German retailer

Chinese e-commerce firm JD.com (9618) has renewed its interest in acquiring German electronics retailer Ceconomy, according to people familiar with the matter.

JD.com recently approached Ceconomy about a potential deal and has started sounding out large shareholders of the German company, the people said.

Shares of Ceconomy jumped as much as 15 percent in trading yesterday hitting the highest intraday level since March 2022 and giving the company a market value of about EUR1.7 billion (HK$13.8 billion).

JD.com has been hunting for acquisitions to expand amid weakness in the domestic economy, and last year it explored an acquisition of British electronics retailer Currys before eventually walking away.

The delivery network of JD.com's logistics arm would also be complementary to Ceconomy's brick and mortar stores. Ceconomy operates roughly 1,000 stores in Europe under the MediaMarkt and Saturn brands, according to its website.

Ceconomy's major shareholders include the holding company of the Kellerhals family, which founded MediaMarkt, as well as family-owned Franz Haniel & Cie, according to data compiled by Bloomberg. Other top investors include vehicles connected to the Schmidt and Beisheim families, which started German retailer Metro.

JD.com previously expressed interest in Ceconomy in late 2023, some of the people said. Deliberations are ongoing and there's no certainty they will lead to a transaction, the people said.

Bloomberg