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Chinese online retailer may get stake in Russia’s M.Video-Eldorado electronics chain

JD.com is interested in not only Ceconomy's European assets but its prior projects in other countries, including Russia

MOSCOW, August 12. /TASS/. JD.com, one of the top e-commerce players in China, will become an indirect co-owner of the Russian retail chain M.Video-Eldorado as a result of buying the German retailer Ceconomy, a source in the domestic appliances and electronics market told TASS.

JD.com announced acquisition of the controlling stake in Ceconomy AG, the owner of MediaMarkt and Saturn chains. The transaction price is estimated at 2.2 bln euro. According to sources close to the deal, JD.com is interested in not only Ceconomy's European assets but its prior projects in other countries, including Russia.

"Media-Saturn-Holding (in 2018, it sold the Russian business of Media Markt to M.Video-Eldorado - TASS) holds a 15% stake in the capital of the Russian retailer M.Video-Eldorado. Therefore, the Chinese company may become the indirect owner of a huge pack of the retailer’s stocks. The Russian business may also turn out to be in the perimeter of interests of the Chinese company," the source said.

JD.com is proactively diversifying their business amid Chinese market saturation and is betting on brick-and-mortar stores and international expansion. In China, JD.com opened more than 10,000 points of sales in different formats, including discount stores and a huge 40,000 sq. m electronic store. Five more stores are planned to be opened in 2025.

"Entering the M.Video business through the minority stake, JD.com will get access at once to the huge audience of retail chain clients. Integration of technologies and partnerships of the Chinese company with M.Video business process may lead to significant enhancement of the Russian retailer and expansion of its capabilities to buy branded products from China on preferential terms," the source added.