JD.com Sets Sight on Currys Acquisition to Spearhead European Expansion Amid Home Turf Rivalry

China’s e-commerce giant, JD.com Inc JD, is currently assessing the possibility of acquiring the U.K. electronics retailer Currys amid growing competition within its domestic market.

Acquiring Currys could mark Alibaba Group Holding Limited’s BABA rapid entry into the European market, leveraging Currys’ presence in countries like Britain, Ireland, and the Nordic region.

According to a JD insider, the acquisition could offer JD an accelerated European expansion and a new channel to introduce European products to the Chinese market, Nikkei Asia reports.

Also Read: Alibaba Losing Ground As Merchants Shift To JD.Com, Douyin And Other Rival Platforms: Report

Currys, predominantly a brick-and-mortar retailer, contrasts with JD’s mainly online sales model.

This exploration of acquisition aligns with JD’s broader international strategy adjustments following its withdrawal from e-commerce ventures in Indonesia and Thailand earlier in 2023.

JD has been refining its export supply chain capabilities rather than making significant overseas investments like its domestic counterparts. JD also offers rapid delivery services in several Western countries, including the U.S. and Europe.

The potential acquisition comes after Currys declined a $880 million purchase offer from Elliott Advisors, citing undervaluation.

JD faces a deadline of March 18 to propose a definitive offer for Currys, with the bid amount yet to be disclosed.

In December, Richard Liu, the founder of JD.com, called for a company restructuring in response to increasing competition, mirroring Jack Ma’s earlier demands for transformation. The company is enforcing strategies like discounts and lower prices to regain market share.

In November, JD reported third-quarter FY23 revenue growth of 1.7% year-on-year to $33.95 billion, missing the consensus of $34.61 billion.

The adjusted net income per ADS of $0.92 beat the consensus of $0.80.