Chinese e-commerce firm JD.com Inc. offered to acquire Ceconomy AG in a deal that would value the German electronics retailer at about €2.2 billion ($2.5 billion).
JD.com has launched a voluntary offer of €4.60 in cash for each Ceconomy share, according to a statement Wednesday that confirmed an earlier Bloomberg News report. The companies signed an investment pact and intent to cooperate, the statement shows.
Ceconomy, the parent of European consumer electronics retailers MediaMarkt and Saturn, would remain a standalone business with no workforce changes. JD.com also secured commitments from holders of 31.7% of Ceconomy shares. Bloomberg News previously reported that a formal offer for Ceconomy had hinged on the support of major shareholders.
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 Plc. Bloomberg News first reported in February that JD.com had revived its interest in acquiring Frankfurt-listed Ceconomy.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.