JD.com is looking for new growth paths. The Chinese e-commerce operator is considering buying the British electronics retailer. Currys. The company in question had already rejected an offer from a US investment fund.
The Telegraph newspaper said in an article that it had received information that JD.com and Currys had held some informal discussions to reach a takeover agreement. This conversation comes at a crucial time as the Chinese company looks for new lines of growth outside its country due to strong competition in Asia and “would help prevent a decline in sales in China“as stated Emily Salter, principal analyst at GlobalData. In addition, we reported in November 2023 that JD.com was interested in investing in the Ceconomy Group, the parent company of MediaMarkt and Saturn.
JD.com’s main competitors at home, PDD and Alibaba, have a presence abroad with international platforms. While abroad, JD.com has mainly focused on building a logistics network called Ochama, which is present in some European countries.
Salter He also stated that “The takeover of Currys wouldn’t pay off immediately, but it could allow the company to further strengthen its online operations and thus better compete with Amazon«.
On March 18, we’ll find out whether JD.com will make an offer to the British retailer
Following speculation and news in the media, JD.com has decided to make a statement to the London Stock Exchange indicating that the company is considering the possibility of acquiring the British retailer, but has not yet made a final decision on whether to do so an offer will be made for curries. The Chinese company has until March 18 to decide whether it will make a formal offer to the British company.
Despite Currys’ share of the UK electrical goods market has declined over the last 10 yearsWith an increase from 22.3% in 2014 to an estimated 19.1% in 2023, it remains the market leader in this sector. This makes it an attractive acquisition option, according to Salter. Due to speculation about JD.com’s possible offer and Eliott Advisors’ rejection of the purchase Shares of the British company have seen a 35% rise in recent days.
Currys has a market capitalization of $962 million (€865 million) and has 21 retail stores in the UK and Ireland, as well as 800 leased stores in various international locations.