On Friday, Reuters reported that the Chinese e-commerce player JD.com is expected to win EU approval for its $2.5 billion bid for German Ceconomy. The acquisition means the company will take over brands such as MediaMarkt and Saturn, thereby gaining a massive physical and digital presence in the European market.
As early as July, Ehandel.se reported that the review of the acquisition had been stepped up and that the EU Commission had then sent formal objections to the deal.
Reviewed for Foreign Subsidies
The investigation has been carried out under the EU’s Foreign Subsidies Regulation, FSR. The aim has been to investigate whether JD.com has benefited from unfair state support from China in the form of, for example, favorable financing and tax breaks.
To meet the authorities, the company has now adjusted its commitments. According to reports, the concessions include JD.com offering both Ceconomy and smaller competitors access to its European logistics and technology resources. This will be done on market-based and non-discriminatory terms.
Decision Expected in November
The EU Commission is expected to make its formal decision no later than November 4th this year. Approval will then be a crucial piece of the puzzle for JD.com in its expansion into Europe.