British electronics chain Currys faced another setback on Friday as Chinese online retailer JD.com withdrew from the takeover race, mirroring Elliott Investment Management’s recent decision.
In a concise statement issued on Friday afternoon, JD.com declared its retreat from pursuing an acquisition of the Main Street brand, less than a month after initially expressing interest.
“JD.com today confirms that, following careful consideration, it does not intend to make an offer for Currys,” the statement read.
The news triggered a sharp decline in Currys’ shares, plummeting over 10% upon the announcement before slightly recovering. As of 2:50 p.m. London time, the stock was trading down 4.4%.
Currys did not provide an immediate response to the request for comment.
The electronics retailer, spanning more than 820 stores across eight countries, has emerged as a potential takeover target amid struggles against heightened competition and subdued consumer spending.
Over the past years, its stock price has gradually declined, currently down approximately 60% since early 2021.
Despite the looming acquisition interest, Currys has been hesitant to engage with prospective buyers.
Elliott Investment Management, earlier this week, disclosed its decision to refrain from further takeover attempts for Currys after facing repeated rejections.
The U.S. investment firm, operating through its affiliate Elliott Advisors, cited the board’s consistent refusal to engage in discussions, leading to the abandonment of plans for an enhanced offer for the U.K. company.
