Shares in Chinese retailer JD.com (HKEX:9618) were lower last week with the broader market as the company announced an acquisition of a German e-commerce company.
JD – Weekly Chart
The price of JD has slipped from the weekly key level of $129.00. There is now a risk of a move to $100.00 if buyers do not emerge.
JD.com is acquiring Germany’s Ceconomy in a deal worth 2.2 billion euros (USD$2.5 billion), giving the company access to the European market.
Ceconomy’s MediaMarkt and Saturn brands will provide access to one of the largest online stores for electronics in Europe. There is also a retail network of 1,000 stores, with a total of 50,000 staff.
Ceconomy CEO Kai-Ulrich Deissner said the deal was expected to be completed in the first half of next year.
“It’s exactly the right partner at the right time,” Deissner said. “Through the partnership, we have access to technologies, world-leading retail expertise, and supply chains that are unparalleled worldwide”.
For JD, the acquisition allows the company access to European markets as Chinese consumers continue to spend cautiously on high-value items. JD.com has been making other moves abroad since 2022, when it started selling its Ochama brand in Holland, and this year, it also began a pilot for its UK online marketplace Joybuy.
Chinese companies have also been expanding their footprint across Europe, in anticipation of the Trump election. That could continue after the recent tariff volatility in global markets.
Deals in Europe doubled to $8.45 billion in 2024, the highest since 2021, and more than 30% of all overseas M&A deals from China, according to LSEG.
JD’s acquisition and the broader weakness in Chinese stocks from last week’s manufacturing data urge caution in JD if it cannot close above the $129 level.
