JD.com considers takeover bid for UK electronics retailer Currys as China’s e-commerce giants look overseas
- JD in preliminary stages of ‘evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys’
- Possible bid comes amid rising competition and slower growth at home for China’s big e-commerce players
JD.com, founded by Chinese billionaire Richard Liu Qiangdong in 1998, is considering a bid for UK electronics retailer Currys as China’s e-commerce giants continue to look for overseas growth amid stagnant demand and rising competition at home.
JD said on Monday it is “in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys”. The UK retailer, which operates 823 stores globally with 28,000 staff, rejected a US$883 million bid from US investment firm Elliott at the weekend.
Currys, which formerly operated the Dixons and Carphone Warehouse brands in Britain before focusing on the Currys name, has struggled to grow profits in recent years as consumer spending has been squeezed by the pandemic, inflationary pressures and higher interest rates.
Beijing-based JD began life as an online white goods merchant and electronics remains a key area for the company. JD said in its statement that there is “no certainty that any offer will ultimately be made”.
Under UK takeover rules, Elliot – which already owns Waterstones bookshops in the UK – has until 5pm on March 16 to make a renewed offer for Currys or announce it is walking away.