The European Commission has opened an in-depth review of JD.com’s 2.2 billion euros (US$2.56 billion) bid for Germany’s Ceconomy AG under the European Union’s Foreign Subsidies Regulation.

It is the first time the regime has been used to scrutinize a Chinese acquisition.

The Commission said it was assessing whether JD.com had received foreign subsidies that distort the EU internal market, including preferential financing, tax incentives, or grants.

Under the regulation, companies must notify Brussels before closing a merger if one party has at least 500 million euros (US$582 million) in European Union revenue.

The buyer has received more than 50 million euros (US$58.2 million) in foreign financial contributions over the past three years. The Commission can impose remedies or block the deal.

Ceconomy, the Germany-based owner of electronics retail chains MediaMarkt and Saturn, generated 22.4 billion euros (US$26.1 billion) in revenue in 2023/24 and has more than 1,000 stores across 11 European countries.

JD.com’s 4.6 euros (US$5.4)-per-share cash offer had support from holders of 31.7% of Ceconomy’s share capital.

JD.com said the planned takeover would be financed with private bank debt and available cash, not Chinese subsidies.

🔗 Source: Bloomberg

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