E-commerce giant JD.com Inc. (9618.HK, JD.US) has been actively seeking acquisitions of brick-and-mortar retailers in Europe, but that expansion suffered a setback with the collapse of a deal in the U.K.
British supermarket chain J Sainsbury plc (SBRY.L) announced on Sunday that it has terminated discussions with JD.com regarding the potential sale of its general merchandise retailer Argos. Sansbury made the announcement after media reports revealed the talks, and JD.com significantly revised its acquisition terms. However, Sainsbury decided the new proposal was not in the best interests of its shareholders, employees and other stakeholders, leading it to withdraw from negotiations.
Argos is the second-largest general merchandise retailer in Britain, operating the country’s third most visited retail website and more than 1,100 collection points. It was acquired by Sainsbury in 2016 for 1.1 billion pounds.
In announcing an end of its talks with JD.com, Sainsbury said it expects to deliver around 1 billion pounds ($1.36 billion) in underlying retail operating profit companywide and more than 500 million pounds in retail free cash flow for its 2025/2026 financial year.
JD.com’s stock opened flat on Monday in Hong Kong, closing at HK$132.7 by the midday break, up 0.76%.
By Lee Shih Ta
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