The possible takeover bid by Chinese tech giant JD.com for Ceconomy seems, at first glance, to be acceptable to the German Association for the Protection of Securities Ownership (DSW).

"Looking at the share price development since the beginning of the year, the offer isn't bad," DSW Managing Director Christiane Hölz told Reuters on Friday. However, for shareholders who invested in the parent company of MediaMarkt and Saturn some time ago, the perspective is different. It also remains unclear whether the offer adequately reflects the company's future potential.

Ceconomy announced on Thursday that it is in advanced talks with Chinese online giant JD.com about a possible takeover bid. JD.com is considering offering Ceconomy shareholders €4.60 per ordinary share. The shares were trading at €4.19 on Friday morning.

The fate of the holding company will depend on the actions of its major shareholders, Hölz added. The founding family of MediaMarkt and Saturn, the Kellerhals family, holds nearly 30 percent of Ceconomy's shares through its investment vehicle Convergenta, making it by far the largest single shareholder. Jürgen Kellerhals represents the family on Ceconomy's supervisory board. The Duisburg-based Haniel family holding is the second-largest shareholder with a 16.7 percent stake. According to the holding, 36.3 percent of Ceconomy shares are in free float. Both major shareholders declined to comment on the Chinese tech giant's approach.

According to Hölz, JD.com had already approached the Düsseldorf-based holding in 2023, but nothing materialized. At the time, an insider said Convergenta was unwilling to part with its shares. Now, it comes down to whether JD.com can reach an agreement with the major shareholders, Hölz said.

Ceconomy has had a turbulent history. The holding became independent in 2017, following the breakup of the former Metro Group. At the time, the company debuted on the stock exchange at €9.32 per share--well above its current value. Ceconomy made big promises then. "The best is yet to come--for our customers and shareholders," said then-CEO Pieter Haas in 2017. However, the years that followed saw failures, setbacks, and numerous management and strategy changes. Under CEO Karsten Wildberger, who took over in 2021, the company got back on track. He focused on greater integration between online and physical stores at MediaMarkt and Saturn, as well as expanded service offerings. He also streamlined the electronics retailers' complex logistics chains and kept a strict eye on costs. However, in April, Wildberger left to join Chancellor Friedrich Merz's cabinet.

"The company is on a good path," Hölz said. "It has brought shareholders back on board and restored its credibility." Ceconomy has managed its transformation and is back on track. For this reason, it remains unclear whether the JD.com offer fully reflects Ceconomy's potential.

(Reporting by Matthias Inverardi, edited by Ralf Banser. For questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).