JD.com secured conditional European Union approval on November 3 for its $2.5 billion acquisition of German electronics retailer Ceconomy, with the Chinese company aiming to close the transaction by November 12. The deal will expand JD.com’s European presence through Ceconomy’s MediaMarkt and Saturn retail chains.
The European Commission reviewed the acquisition under its Foreign Subsidies Regulation over concerns about potential Chinese government support. To secure approval, JD.com committed to conducting transactions with Ceconomy, including financing, on market terms. It will also offer third-party retailers access to its warehousing and logistics services on the same terms as Ceconomy, measures intended to prevent cross-subsidization of its European operations. [Reuters]