Home Economy News China’s JD.com walks away from offer for Britain’s Currys

China’s JD.com walks away from offer for Britain’s Currys


China’s JD.com walks away from offer for Britain’s Currys By Reuters

Breaking News



Published Mar 15, 2024 10:12AM ET
Updated Mar 15, 2024 10:50AM ET

© Reuters. A person rides a scooter past a JD.com advertisement for the “618” shopping festival in a shopping district in Beijing, China June 14, 2022. REUTERS/Thomas Peter/File Photo

LONDON (Reuters) – China-based online retailer JD (NASDAQ:JD).com said on Friday it would not make an offer for British electricals group Currys, days after U.S. investor Elliott Advisors walked away.

Shares in Currys, which slumped to a session low after the update, were down 5% at 56.3 pence by 1425 GMT.

JD.com, which was keen on Currys’ store and warehouse network to help it expand in the UK and Europe and counter weak demand in China, had said on Feb. 19 it was evaluating a possible offer.

However, it said on Friday that “following careful consideration”, it does not intend to make a bid. Currys had no immediate comment.

Elliott Advisors said on Monday it wouldn’t be making a firm offer for Currys either, having had proposals of 62 pence a share and then 67 pence a share rejected.

The stock closed Thursday at 58.9 pence, giving Currys a market capitalisation of 670 million pounds.

Analysts at Peel Hunt had said it would take an offer of over 80 pence per share for Currys’ board to engage.

While Currys, which sells fridges, washing machines, computers and other consumer electricals in Britain, Ireland, Sweden, Norway, Denmark and Finland, has struggled to grow over the last two years due to the squeeze on consumer incomes, the company has argued its prospects are bright.

In January it forecast annual profit ahead of market expectations as it benefited from improving consumer confidence and a better performance in its Nordics business.

Earlier this month, it said a deal to sell its Greek unit would complete in April, giving it net cash proceeds of 156 million pounds which it would use to reduce debt.

The number of failed takeovers of UK-listed companies has more than doubled in recent years as boards have rebuffed a slew of bids they believe are taking advantage of cheapened stock prices.

China’s JD.com walks away from offer for Britain’s Currys

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News