The retailer’s parent company, CECONOMY, sees the deal as an opportunity for growth. JD.com is expected to provide new retail, logistics and technology solutions. It says it will not control the retailer’s IT systems or customer data and will instead build up its own European technology system.The company also expects the deal to create major savings and increase profits. It aims to raise adjusted EBIT to 800 million euros, sales to around 24 billion euros and free cash flow to around 300 million euros by 2028/29.The retailer also wants to build customer trust through advice, repairs, trade-ins and digital services.
Impact on European competition
The deal could have far-reaching effects, though. With over 1,000 stores in 11 countries, it could change supply chains, logistics, online sales and competition across Europe. The key question is whether the takeover will bring more innovation and competition or further strengthen the position of a powerful global company. The ongoing EU reviews will help determine this.
VERE e.V. is in contact with the relevant stakeholders and keeps its members informed of further developments via the “VERE Insider”.
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