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Chinese e-commerce giant JD.com given notice of EU concerns over Ceconomy takeover

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By Foo Yun Chee

BRUSSELS, July 22 (Reuters) - Chinese e-commerce giant JD.com was hit with formal ‌notice of regulatory concerns over its $2.5 billion ‌bid for German electronics retailer Ceconomy on Wednesday in a move ​that could require hefty concessions.

The European Commission opened a full-scale investigation into the deal in May under the Foreign Subsidies Regulation that targets unfair foreign ‌state aid.

The Commission was ⁠investigating whether JD.com received preferential financing, tax incentives and grants from the Chinese ⁠government that may have helped it to offer a higher price for Ceconomy.

JD.com, which can now offer ​remedies to ​address the EU concerns, ​said that the Commission's ‌statement of grounds is a normal procedural step.

"We remain confident the transaction supports Europe's broader objectives around innovation and competitiveness. We continue to expect a positive conclusion of the process in the second ‌half of 2026," the company ​said ahead of the Commission's ​announcement.

The Commission set ​an October 2 deadline for its decision ‌on whether to clear the ​deal.

The acquisition ​would allow one of China's largest retailers to expand outside its home market via Ceconomy-owned ​electronic products retailers ‌MediaMarkt and Saturn.

(Reporting by Foo Yun CheeAdditional ​reporting by Philip BlenkinsopEditing by Joe Bavier, Louise ​Heavens and David Goodman)

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