(Yicai) July 31 -- JD.Com’s shares dipped after the Chinese e-commerce giant revealed a EUR2.2 billion (USD2.5 billion) takeover bid for Germany’s Ceconomy, the parent company of consumer electronics retailers MediaMarkt and Saturn.

JD.Com [HKG: 9618] closed down 3.2 percent at HKD122.90 (USD15.66) a share in Hong Kong today. Its US-listed stock [NASDAQ: JD] dipped 1.5 percent to USD31.75 yesterday.

JD.Com subsidiary Jingdong Holding Germany has made a voluntary cash offer of EUR4.60 (USD5.30) per Ceconomy share, its parent announced today. The Dusseldorf-based firm’s management and supervisory board support the proposed deal, which may complete in the first half of next year.

Ceconomy’s shares [ETR: CEC] have climbed more than 20 percent in the past month on speculation of a takeover by Beijing-based JD.Com. They were trading up 1.6 percent at EUR4.42 each as of 2.09 p.m. in Germany.

As part of the deal, JD.Com will acquire 31.7 percent of Ceconomy from the retailer's main shareholder group, which includes Convergenta Invest. Convergenta will retain a 25.4 percent stake after the takeover and partner with JD in running the business, the buyer said.

“This partnership with Ceconomy will build Europe’s leading next-generation consumer electronics platform,” said JD.Com Chief Executive Sandy Xu.

“Ceconomy’s market-leading position, strong customer relationships and growth are impressive, and we are firmly committed to investing in its people and distinct culture to build on this success,” Xu said. “We will work with the team to strengthen the capabilities, while applying our advanced technology capabilities to accelerate Ceconomy’s ongoing transformation.”

JD.Com will drive Ceconomy’s growth as a stand-alone business and accelerate its transformation into Europe’s leading omni-channel consumer electronics platform, the firm said. No changes are planned to the workforce, employee agreements, or locations after the takeover, it added.

Ceconomy was spun off from German retailing giant Metro Group in 2017. Its two main brands, MediaMarkt and Saturn, operate omni-channel retail businesses, combining a strong online presence with more than 1,000 brick-and-mortar stores in 11 countries.

The firm’s adjusted earnings before interest and tax surged 81 percent to EUR10 million (USD11.4 million) in the first quarter from a year ago, while sales fell 1.6 percent to EUR5.2 billion (USD5.9 billion), according to its latest earnings report.

JD.Com has accelerated its expansion into European markets since the beginning of this year. In March, the company became the official e-commerce partner of the UEFA Champions League. And in April, JD.Com said it had kicked off trial operations of its overseas retail brand Joybuy in London and is inviting more brands from baby products to toys to join the platform.

Editor: Kim Taylor