Chinese ecommerce giant JD.com has completed its $2.5bn takeover of German electronics retailer Ceconomy, the company confirmed.
The deal, finalised on Thursday, hands the Joybuy owner control of MediaMarkt and Saturn, which operate more than 1,000 stores across 11 European markets.
JD.com acquired a 59.8 per cent stake in Ceconomy for €1.34bn, with its investment partner Convergenta retaining a further 25.3 per cent, bringing their combined ownership to 85.2 per cent.
Jack Li, chief executive of JD Worldwide, recently told Reuters that the group intends to use the acquisition to build Europe’s leading consumer electronics retail platform.
JD.com is planning a major overhaul of delivery services, with ambitions to introduce next-day delivery across Europe, 90-minute deliveries through Uber and in-store collection within 30 minutes.
Ceconomy chief executive Remko Rijnders said the improvements would give the business a significant competitive advantage.
“This will change the market in Europe,” he said.
The acquisition will also allow customers using JD.com’s European ecommerce platform Joybuy to access MediaMarkt and Saturn stores, strengthening the group’s physical retail presence.
JD.com is planning to expand its European logistics infrastructure, which currently includes more than 60 distribution centres, as it looks to accelerate its international expansion.
Ceconomy will continue operating as a standalone business under its existing management team, with no major changes planned to its workforce or store network.
The deal was made final after months of regulatory scrutiny from the European Commission over concerns surrounding potential Chinese state subsidies.
Brussels granted final approval earlier this month after JD.com offered commitments designed to address competition concerns.
It’s another significant step in JD.com’s push into European retail, following the launch of Joybuy in the UK earlier this year.
The platform has been targeting established retailers including Amazon and Currys through competitive pricing and fast delivery, with the Ceconomy takeover providing further scale to support its ambitions across the continent.
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