Currys acquisition could challenge Amazon, GlobalData says’s potential acquisition of Currys could see it "compete with Amazon" in its online operations, GlobalData has said.

The Chinese e-commerce firm stated earlier this month that it was considering making an offer for the UK-based technology retailer.

This came after Currys, which employs over 28,000 and recorded revenue of £4.2bn in the first half of the financial year, rejected a £700m offer from Elliot to acquire the firm, stating that it “significantly undervalued the company”.

Lead analyst at GlobalData, Emily Salter, said: "Although Currys’ UK electricals market share has fallen significantly in the past 10 years, from 22.3% in 2014 to a forecast 19.1% in 2023, it remains the electricals market leader in the UK, making it an attractive acquisition proposition.

"The retailer has come under significant threat from Amazon, whose market share has increased by 7.7ppts to 17.2% over the same period, but Currys’ position as an omnichannel retailer and the expertise its staff offer to consumers, both instore and online, has protected its sales. GlobalData forecasts that Currys will retain its top spot in the UK electricals market in 2027, fending off competition from Amazon."

Following the formal consideration, now has until 16 March to make an offer for the firm or walk away from the deal.

According to GlobalData, shares at Currys have increased by 30% since the offer was made.

Salter added: "The purchase of Currys would give access to the UK market, as well as giving it a foothold in the Nordics where Currys also operates. This geographical diversification would help protect it against a slowdown in sales in China.

"However, Currys has struggled to generate growth recently due to the impacts of high inflation on consumer willingness to buy big-ticket items and growth in the UK electricals market is set to be sluggish in 2024. Acquiring Currys would not bear fruit immediately, but’s ownership of it could enable it to bolster its online operations further, helping it better compete with Amazon."

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