The company that successfully acquires Zalando can instantly turn into Europe’s largest online fashion retailer.
That’s what an analyst at German investment bank Baader Helvea said, citing Zalando as a potential takeover target at a low buyout price.
Zalando’s share price spiralled down after announcing a second profit warning in the previous quarter, but they remain a valuable investment for investors, according to Volker Bosse, co-head of Baader Helvea Equity Research.
Since Amazon and Alibaba are not only well-versed in Europe’s eCommerce market but also keen on dominating it, they seem to be the perfect candidates for a takeover bid.
Should either of them express interest in acquiring Zalando, Bosse said:
“We see the potential that these investors could sell if the offered price is right.”
What makes Zalando an ideal target?
Even though they reported lower-than-expected revenues for the third-quarter, not to mention a £34 million loss, Zalando’s data of more than 25 million customers and 2.5 billion website visits per year makes them a promising acquisition target.
What’s more, the company’s transition from an online store to a marketplace and infrastructure provider has helped push them further up the ladder of the fashion industry.
Zalando Co-CEO Rubin Ritter said during the company’s Q3 2018 earnings call that they will continue their upward trajectory in 2019 to make sure that they achieve 5% market share.
Who do you think would win in a takeover bid if ever one takes place—Amazon or Alibaba? We’d love to hear from you in the comments below.
As always, to your continued success,
Dave & Matt