Chinese online retailer JD.com Inc. is in talks to buy German Ceconomy, which owns, among other things, the MediaMarkt chain of electronics shops, for €2.23bn.
According to a statement from Ceconomy, JD.com plans to offer €4.6 per share in the company.
The parties have not yet signed any legally binding agreements, and there is no certainty that the Chinese company will make an offer, Ceconomy notes.
Shares in the German company added more than 13 per cent in trading on Thursday. Their value has risen 61% since the beginning of this year.
Ceconomy, founded in 1996, is headquartered in Düsseldorf. In addition to MediaMarkt, the company owns the Saturn chain of shops.