*

Completion expected by first half of 2026

*

Allows JD.com ( JD ) to expand outside China

*

Ceconomy's brands and headquarters to remain

*

No compulsory redundancies for three years

(Adds statement from JD.com ( JD ), Ceconomy CEO on stake in French

firm and context on Chinese deals in Europe)

By Matthias Inverardi and Matthias Williams

DUESSELDORF, Germany, July 30 (Reuters) - JD.com ( JD )

is acquiring Germany's Ceconomy in a deal

that values the electronics retailer at 2.2 billion euros ($2.5

billion), allowing one of China's largest online retailers to

expand outside of its home market.

Ceconomy's MediaMarkt and Saturn brands will give JD.com ( JD ),

which competes with Alibaba ( BABA ) and Amazon ( AMZN ),

access to one of the largest online shops for electronic goods

in Europe and a network of about 1,000 stores in several

European countries. About 50,000 people work at the two chains.

The deal, announced on Wednesday, values Ceconomy at 4.60

euros a share and CEO Kai-Ulrich Deissner told Reuters it would

likely be completed in the first half of next year.

"It's exactly the right partner at the right time," Deissner

said. "Through the partnership, we have access to technologies,

world-leading retail expertise, and supply chains that are

unparalleled worldwide."

Ceconomy's management board and supervisory board will

recommend accepting the offer to shareholders, it said in a

statement. Its Duesseldorf headquarters would remain, it said.

"We will work with the team to strengthen the capabilities,

while applying our advanced technology capabilities to

accelerate Ceconomy's ongoing transformation," said Sandy Xu,

CEO of JD.com ( JD ), in a statement.

"Our goal is to further grow Ceconomy's platform across

Europe and create long-term value for customers, employees,

investors and local communities."

The Kellerhals family, the largest single shareholder of

Ceconomy with just under 30% of the shares, has accepted an

offer for 3.81% of its shares and intends to remain an

investor with a stake of approximately 25.35%.

Shareholders Haniel, Beisheim, BC Equities, and Freenet

, which together control approximately 27.9% of the

shares, intend to sell their shares to JD.com ( JD ).

"There will be no compulsory redundancies for three years

following the closing of the transaction," Deissner said,

adding that he does not anticipate any major problems from

antitrust authorities.

RATINGS BOOST

Europe is emerging as a hotspot for Chinese deals and

investments and the region is expected to attract more money

from China driven by U.S. President Donald Trump's tariff war,

said advisers.

Deals into Europe more than doubled to $8.45 billion in

2024, the highest since 2021, and made up more than a third of

all China outbound M&A, according to LSEG data, despite

increased scrutiny of foreign investments into the region.

"There's potentially more of an incentive for China and the

EU to work closer together on the economic front, in view of the

trade policies of the Trump administration," said Alan Wang, a

global transactions partner at law firm Freshfields.

Ceconomy plans to keep its 23.4% stake in French retailer

Fnac Darty after the JD.com ( JD ) deal, Deissner said.

"The stake in Fnac Darty will remain. We view it as a

long-term strategic option, which we are committed to," he said.

Ceconomy last week confirmed it was in advanced negotiations

over a potential takeover.

Ceconomy had annual sales of 22.4 billion euros in its

2023/24 financial year, of which 5.1 billion euros were online.

JD.com ( JD ) had looked at an acquisition of British electronics

retailer Currys ( DSITF ) last year.

Fitch Ratings said on Wednesday the takeover could bolster

Ceconomy's credit profile.

"A takeover by JD may lead to an upgrade of Ceconomy's

rating, benefitting from JD's stronger credit profile, given the

latter's market position as one of the largest global e-commerce

platforms with $160 billion revenue providing services across

retail, technology, logistics, and healthcare sectors," it said.

"We believe that the acquisition of Ceconomy would boost

JD's presence in Europe through the former's over 1,000 stores

under MediaMarkt and Saturn brands, and its online presence (24%

of sales)," it added.