JD.com has received European Commission approval to acquire Ceconomy, the parent company of electronics retailers MediaMarkt and Saturn, in a deal valued at €2.2 billion. The Commission said on Tuesday that it had completed its review, including examining whether Chinese state support could have helped finance the takeover.
The approval followed commitments from JD.com intended to address the Commission’s concerns about possible subsidies. The company agreed to supply and finance Ceconomy on market terms and to provide smaller competitors with fair, non-discriminatory access to its European logistics and technology infrastructure. The Commission said these measures would prevent JD.com from using cross-subsidies to support its European business.
With all required approvals in place, the takeover is expected to be completed in the coming days. Ceconomy shareholders who accepted JD.com’s offer are expected to receive payment on November 12.
The acquisition gives JD.com access to more than 1,000 stores and Ceconomy’s major online shops. Ceconomy employs 48,000 people, including around 17,000 in Germany. JD.com has previously said it intends to delist the company.
Ceconomy chief executive Remko Rjinders said the partnership would begin a new chapter and help accelerate the company’s omnichannel retail strategy. JD.com chief executive Sandy Xu said the company aimed to support Ceconomy’s growth and strengthen its position in Europe’s changing retail market.
Sources: FAZ.