JD.com in final talks to acquire Ceconomy for ~$5.28 per share in cash – reports

Chinese ecommerce platform JD.com (NASDAQ:JD) is reportedly in final talks to acquire German electronics retailer Ceconomy (OTCPK:MTAGF) (OTCPK:MTTRY), according to Reuters.

While the purchase price was not disclosed, estimates place Ceconomy’s (OTCPK:MTAGF) (OTCPK:MTTRY) value at approximately $2.6B. According to a Ceconomy (OTCPK:MTAGF) (OTCPK:MTTRY) statement cited by Bloomberg, JD.com (NASDAQ:JD) is prepared to offer shareholders €4.60 ($5.28) in cash for each Ceconomy (OTCPK:MTAGF) (OTCPK:MTTRY) share.

An announcement could occur as early as Wednesday.

By acquiring Ceconomy (OTCPK:MTAGF) (OTCPK:MTTRY), JD.com (NASDAQ:JD) establishes a footprint in the European consumer electronics market, and supports JD.com’s (JD) existing logistics framework to shorten delivery times and compete more effectively with Amazon’s (AMZN) same-day delivery.

Additionally, a move into European markets will help JD.com offset sluggish demand in China and increased competition from Chinese rivals like Alibaba (BABA).

JD.com (JD) shares are 1% lower, while Ceconomy (OTCPK:MTAGF) (OTCPK:MTTRY) shares were are up more than 2% on the German exchange.