Chinese e-commerce giant JD.com given notice of EU concerns over Ceconomy takeover

By Foo Yun ‌Chee

BRUSSELS, July ​22 (Reuters) - ​Chinese e-commerce giant JD.com was hit with formal notice of regulatory concerns over ‌its $2.5 billion bid for German electronics retailer ⁠Ceconomy on Wednesday in a move that could require hefty ‌concessions.

The European Commission opened ‌a full-scale investigation into the deal in May under the Foreign Subsidies Regulation that targets ​unfair foreign state aid.

The Commission was investigating whether JD.com received preferential financing, tax incentives ⁠and grants from the Chinese government that may have helped it ​to offer a higher price for Ceconomy.

JD.com, which can now offer remedies to address ​the EU concerns, said that ‌the Commission's statement of grounds is a normal procedural step.

"We remain confident ⁠the transaction supports Europe's broader objectives around innovation and competitiveness. We continue to expect a positive conclusion ⁠of the process in the second half of 2026," the ​company said ahead of the Commission's announcement.

The Commission set an October 2 deadline for its decision on whether to ‌clear the deal.

The acquisition would allow one of China's largest retailers to ‌expand outside its home market via Ceconomy-owned electronic ⁠products retailers MediaMarkt ‌and Saturn.

(Reporting by ​Foo Yun CheeAdditional reporting by Philip BlenkinsopEditing by Joe Bavier, Louise Heavens and David ‌Goodman)

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