Reinforced Expansion Boosts Media Market and Saturn prior to Acquisition
In a significant move, Chinese online retail giant JD.com has announced its intention to acquire Media Markt and Saturn, the parent company Ceconomy, at the end of July. This acquisition, valued at around 2.2 billion euros, is set to be completed in the first half of 2026, with Ceconomy disappearing from the stock exchange.
The strategic intent behind this acquisition is to expand JD.com's European market presence while leveraging its advanced technology and logistics to accelerate the digital transformation of Ceconomy. This move allows JD.com to combine its strong e-commerce and supply chain capabilities with Ceconomy's established brick-and-mortar network and large customer base across Europe, positioning JD.com as a major omnichannel retail player on the continent.
Immediate Scale and Market Penetration
MediaMarktSaturn operates over 1,000 stores across 11-12 European countries, with annual sales of approximately €22 billion and about 2.2 billion customer contacts. This immediate scale and market penetration will provide JD.com with a solid foundation to grow its European operations.
Digital Transformation Acceleration
JD.com aims to use its leading online retail technology, IT infrastructure, and logistics expertise to help modernize and grow Ceconomy's offline and online channels. Currently, Ceconomy's online sales share is less than 30%, a segment where JD.com is highly experienced.
Omnichannel Commerce Growth
By integrating JD.com's supply chain and e-commerce strength with MediaMarktSaturn’s strong physical presence, JD.com plans to create a seamless customer experience across online and offline platforms, effectively challenging global rivals like Amazon and Alibaba in Europe.
Long-term Value Creation with Operational Independence
JD.com commits to maintaining Ceconomy’s corporate structure, respecting local trade union agreements, and preserving independent IT systems at least for five years. This approach aims for steady growth without disrupting the existing brand equity and culture.
Competition and Approval
JD.com intends to strengthen its position in competition with Alibaba and Amazon through this transaction. However, approval from the competition authorities is required before the completion of the transaction. The Federal Financial Supervisory Authority (Bafin) will need to approve the offer for JD.com to acquire Ceconomy.
In the third quarter of the 2024/25 financial year, Ceconomy managed to reduce its adjusted operating loss (Ebit) to 31 million euros and increased its adjusted sales by 5.1 percent to 4.8 billion euros. The major shareholders of Ceconomy have agreed to give JD.com around 57 percent of the shares.
Ceconomy CEO Kai-Ulrich Deissner stated that the company has made steps towards profitability for the tenth consecutive quarter and has accelerated its pace. He also confirmed that brands and stores under Media-Saturn will remain after the acquisition.
This €2.2 billion acquisition is JD.com's largest international deal to date and signals its strategic shift from a primarily domestic Chinese focus to becoming a global retail powerhouse, especially in Europe’s consumer electronics sector.
- JD.com's acquisition of Ceconomy, a significant step in its strategic shift, aims to foster long-term value creation by leveraging vocational training in digital transformation, especially in the finance and business sectors, to accelerate Ceconomy's offline and online channels, which currently have a limited online sales share.
- To position itself as a major omnichannel retail player in Europe, JD.com plans to use its advanced technology and logistics, gained through vocational training, in combination with Ceeconomy's established brick-and-mortar network and large customer base, to penetrating the industry with seamless customer experiences across online and offline platforms, challenging global rivals like Amazon and Alibaba.
