JD.com's €2.2bn acquisition of German electronics retailer Ceconomy has been cleared by the European Commission following an investigation into foreign subsidies. Brussels determined the Chinese ecommerce group benefited from state aid, making this the first Chinese takeover of a European company assessed under the EU's new foreign subsidy regulation. The Commission accepted JD.com's 10-year commitments to remedy distortions, including conducting intragroup transactions on market terms and providing technology and logistics to other retailers on the same terms.
EU antitrust chief Teresa Ribera stated these measures prevent cross-subsidisation and ensure a level playing field. Ceconomy shares rose 2.5 per cent on approval. The deal supports JD.com's international ambitions, following failed talks for UK retailers Argos and Currys.
JD.com chief Sandy Xu said the goal is to support Ceconomy's sustainable growth and innovation in the evolving European retail market. Ceconomy CEO Remko Rijnders added customers will benefit from wider selection and faster deliveries. The closure comes five months behind the target completion date, just before the regulatory long-stop date.
Source: Financial Times Companies · Summarized by HeadlinesBriefing