Benzinga - by Anusuya Lahiri, Benzinga Editor.
Alibaba Group Holding Limited (NYSE:BABA) rival JD.com Inc (NASDAQ:JD), recently announced it would not pursue an acquisition of British electrical retailer Currys. JD.com’s stock price declined after the report.
This decision comes shortly after US investor Elliott Advisors also opted out of making an offer for Currys, having had its proposals of 62 pence and 67 pence per share declined.
JD.com’s interest in Currys was primarily due to its extensive store and warehouse network, aiming to facilitate JD.com’s expansion into the UK and Europe amidst weakening demand in China, Nikkei Asia reports.
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However, after a period of evaluation since its initial announcement on February 19, JD.com decided against making an offer, stating it came to this conclusion after “careful consideration.”
Currys, a retailer of consumer electronics like fridges, computers, and washing machines across Britain and several Nordic countries, has seen limited growth over the past two years, impacted by consumer income pressures. Despite this, the company has been optimistic about its future, citing improved consumer confidence and more robust performance in its Nordics segment.
In March, JD.com reported fourth-quarter fiscal 2023 revenue growth of 3.6% year-on-year to $43.1 billion, beating the consensus of $42.2 billion. The adjusted net income per ADS of $0.75 beat the consensus of $0.63.
Investors can gain exposure to JD.com via VanEck Retail ETF (NASDAQ:RTH) and ProShares Online Retail ETF (NYSE:ONLN).
Price Action: JD shares traded lower by 3.43% at $27.05 on the last check Friday.
Also Read: JD.com’s Expansion and Pricing Strategy Cited as Key Drivers for Future Success: Analyst
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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