China’s JD.com Walks Away From Bid for UK’s Currys

Jennifer Creery, Bloomberg News

, Bloomberg

(Bloomberg) -- JD.com Inc. said it will not make an offer for British electronics retailer Currys Plc, just days after US buyout firm Elliott Investment Management also walked away.

Shares in Currys fell 4.8% to 56.10 pence after the Chinese e-commerce giant backed away without giving a reason. The stock was trading at about 47 pence before news of the first offer broke.

There had been speculation of a potential bidding war for Currys after Elliott’s approaches were rebuffed and JD.com said it was considering making an offer.

Elliott had made two approaches at 62 pence and 67 pence a share in recent weeks, valuing the chain at as much as £760 million ($968 million) — but both were turned down, with Currys saying the company is worth substantially more.

The US firm said this week that “following multiple attempts to engage with Currys’ board, all of which were rejected,” it did not have the necessary information to make a third bid.

Currys operates more than 800 stores across eight countries. It has attracted attention as its share price has been depressed in recent years, with high inflation discouraging shoppers from buying expensive electrical items such as TVs and computers.

Seeking Growth

One of China’s largest online retailers, JD.com has been looking for growth opportunities as its domestic consumer market slows and competition increases.

Under UK takeover rules, both Elliott and JD.com cannot make another approach for Currys for at least six months, unless either gets approval from the retailer’s board or a rival offer materializes.

Currys may now have to justify its improved share price, according to Bloomberg Intelligence retail analyst Charles Allen, although he said it remains cheaper than peers.

Despite the market reaction, “there will be some relief that Currys will not join an exodus of firms leaving the London Stock Exchange after being snapped up by overseas buyers,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

A spokesperson for Currys declined to comment.

(Updates with analyst comment.)