The rumors about a possible investment by the Chinese e-commerce giant in the European electronics retailer are increasing and are heating up the trading floor.
As soon as the Manager Magazin report was published, Ceconomy’s share price went crazy: the stock of the German electronics retailer, which includes the Mediamarkt and Saturn chains, shot up by almost 16 percent (on November 15, 2023). Background: The Chinese e-commerce giant JD.com reportedly wants to join Ceconomy.
The timing seems good: Well-informed sources have been saying for a while that the investment company Haniel is considering selling its shares in Ceconomy; Haniel currently holds 16.7 percent of the company. The discussions with JD.com have at least progressed to the point where Deutsche Bank is on board as an advisor, reports Manager Magazin.
Complicated ownership relationships
Friendly, interested discussions are just the beginning of every takeover, and this is especially true in the Ceconomy case – because the company’s ownership structure is complicated. Haniel holds the aforementioned 16.7 percent, but there are also the existing shareholders from the trading dynasties Beisheim (4.8 percent) and Schmidt-Ruthebeck/Meridian-Stiftung (11.1 percent).
Together with Haniel, they hold almost a third of Ceconomy. That’s why, according to the report, JD.com is also in discussions about the shares of Beisheim and Schmidt-Ruthebeck. Another 29 percent of the company belongs to Mediamarkt co-founder Erich Kellerhals, 6.7 percent is owned by Freenet, the rest are scattered shares.
The mobile phone provider Freenet is so far the only major shareholder to comment on the rumors about JD.com, but has nothing helpful to contribute: “JD.Com has not asked us about our share,” said a Freenet spokeswoman on Wednesday. From all other shareholders: no comment.
The fact is: If a shareholder reaches the threshold of 30 percent, he is obliged to make a mandatory offer to all other shareholders. If JD.com actually buys the shares of Haniel, Beisheim and Schmidt-Ruthebeck, a full takeover of Ceconomy is a very real option.
Chinese on a shopping spree in European e-commerce
JD.com’s interest is hardly surprising. After all, the Chinese giant has to keep up with its eternal rival Alibaba.com. He is currently investing in one European platform after another. The Turkish marketplace Trendyol and the Spanish platform Miravia are already in Alibaba hands. And yesterday the majority takeover of the B2B platforms wer-liefert-was and Europages by Alibaba was announced. Chinese e-commerce is on a shopping spree in Europe. It remains to be seen who will end up in the shopping cart next.
