EU Commission Conditionally Approves JD.com's €2.2 Billion Ceconomy Acquisition: First Chinese Takeover Assessed in Depth Under the Foreign Subsidies Regulation
BRUSSELS — The European Commission on November 3 conditionally approved Chinese e-commerce company JD.com's acquisition of German consumer-electronics retailer Ceconomy, in a deal worth about €2.2 billion. Ceconomy is the parent company of MediaMarkt, Saturn and MediaWorld, which operate more than 1,000 stores across Europe and employ about 50,000 people.
The Commission opened an in-depth investigation into the deal on May 28 under the Foreign Subsidies Regulation (FSR), examining whether preferential financing, grants and tax incentives potentially linked to the Chinese state could give the acquisition, and Ceconomy's future European operations, an unfair competitive advantage. The FSR allows the EU to examine whether financial support from non-EU governments distorts competition in the internal market.
To secure approval, JD.com and Ceconomy accepted binding commitments in force for ten years, monitored by an independent trustee: financial arrangements between JD.com and Ceconomy must follow normal commercial conditions, and JD.com must provide its warehousing, logistics and technology services to third-party retailers on terms equivalent to those offered to Ceconomy. The deal had earlier received foreign investment approvals in Germany, France, Italy, Spain and Austria, and the Commission decision was the final regulatory clearance required. Completion is expected in November, with JD.com reportedly targeting November 12.
The case is the first acquisition of a European company by a Chinese company to be assessed in depth under the Foreign Subsidies Regulation. The China Chamber of Commerce to the EU welcomed the Commission's approval in a statement on November 4, saying it underscored the value of dialogue.
China's Ministry of Commerce said on October 29 that if the EU persisted in imposing discriminatory restrictions against Chinese products, China would take all necessary measures to defend its legitimate rights and interests.
(Source: European Commission)
Source: European Commission
Published by GSM · USA (original Chinese edition)
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