JD.com acquires Ceconomy to build a leading platform in Europe

Jack Li, global CEO of JD.com, said in an interview with Reuters: "We hope to work together to build Europe's leading electronic products trading platform." Remko Rijnders, CEO of Ceconomy, the parent company of MediaMarktSaturn, said in the same interview that this cooperation will change the European market with faster delivery services.

After lengthy negotiations with the European Commission, JD.com announced on Thursday (November 12) the completion of its voluntary public tender offer for European consumer electronics retail group Ceconomy. This will bring major changes to MediaMarkt and Saturn, and will also affect JD.com’s Joybuy platform. Joybuy aims to compete with Amazon and Alibaba and win customers in the European market.

Delivered within 90 minutes

“With the power of JD.com, we hope to achieve next-day delivery across Europe,” Reijnders announced.

The Ceconomy CEO said customers can also choose to enjoy a 90-minute delivery service via Uber and in-store pickup within 30 minutes. "Currently no competitor can provide such a service," he said. "This will change the European market structure." The two chains, MediaMarkt and Saturn, have more than 1,000 stores in 11 European countries and employ about 50,000 people. In addition, both retailers' online platforms will remain in place.

In the future, customers of Joybuy and MediaMa will open their online markets to each other. Since Media Markt and Saturn are currently too similar, Saturn will be repositioned as an independent brand. “Saturn will focus on innovation and gaming, targeting the younger generation.”

"We hope to expand our logistics network in Europe," Li Shuai announced. "We already have more than 60 logistics centers in Europe and will continue to increase investment."

Reinders and his management team will continue to run the company under the new owner: "Ceconomy has a strong management team," Li Shuai said. "We will not make any changes."

Open to other customers of the logistics network

JD.com will set its sights on Ceconomy in 2025. The European Commission approved the €2.2 billion deal in early November this year after a lengthy review, but with some conditions attached. The European Commission's investigation concluded that JD.com had received Chinese government subsidies that could distort competition in the EU. To this end, JD.com made concessions. For example, any future financial support provided by the new parent company to its European subsidiaries must be strictly in accordance with fair market conditions. Logistics services must be open to third parties and provided to them on the same terms as Ceconomy.

Li Shuai emphasized that Ceconomy is in good financial condition and is currently self-sufficient. "However, we have big plans for the future and will require additional investment," he said.

"If financing is needed, it will of course be provided in accordance with market standard conditions." He said, "We need to build a competitive network here to provide customers with services that are better than those of our competitors." "

After the acquisition is completed, JD.com plans to promote the joint development of Joybuy and Ceconomy after the acquisition is completed. “This will take up resources,” Li Shuai said. JD.com currently has no specific plans for further acquisitions in Europe, “but we don’t know what the future will bring; everything is possible. "