The JD.com is close to obtaining approval from the European Union to take over Ceconomy, owner of the MediaMarkt and Saturn chains, after strengthening the concessions offered to address Brussels' concerns over possible subsidies received in China. The information was published by Reuters on Friday (2), citing a person familiar with the process.
The deal provides for the payment of €4.60 per Ceconomy share, in an offer initially valued at about €2.2 billion. JD.com has already secured 59.8% of the capital through the public offer. Added to the 25.35% stake that will remain with Convergenta, a shareholder of the MediaMarkt founding family, the structure represents 85.2% of the shares.
The closing, however, depends on regulatory approval. The European Commission opened an in-depth investigation in May based on the Foreign Subsidies Regulation, a mechanism that allows examining whether resources granted by governments outside the bloc offer advantages capable of distorting the European market.
JD.com changes proposal to respond to Brussels
The Commission preliminarily identified possible benefits to JD.com through preferential financing, tax incentives and subsidies attributable to China. One of the concerns is that these resources allowed the company to offer acquisition terms that would not be available under normal market conditions.
The company submitted formal commitments in August. After criticism received during the assessment of the initial measures, JD.com improved the proposal, according to Reuters. Among the concessions are Ceconomy's access to the company's European logistics and technology infrastructure on market terms and guarantees of fair and non-discriminatory access for smaller competitors.
Reuters reported that the new measures put the deal on track for approval. The Commission's final decision is expected by November 4, although the outcome has not yet been officially announced.
Ceconomy gives JD.com immediate scale in Europe
The purchase would put one of Europe's largest consumer electronics chains under JD.com's control. Ceconomy operates more than 1,000 stores in 11 countries, mainly through the MediaMarkt and Saturn brands, in addition to maintaining a significant e-commerce operation.
For the Chinese company, the deal offers an expansion route different from the gradual building of its own brand on the continent. JD.com already operates in the European Union with retail, logistics and warehousing, including the Joybuy brand, but Ceconomy would immediately add physical stores, digital channels and relationships with major manufacturers.
The process also shows how large Chinese acquisitions in Europe began to face an additional layer of scrutiny. Since 2023, the Foreign Subsidies Regulation allows Brussels to investigate not only the competitive effects of an acquisition, but also the origin of the financial advantages used to carry it out. If the commitments presented do not eliminate the identified distortion, the Commission can require new measures or block the deal.
The eventual approval of Ceconomy, therefore, would not eliminate that barrier. It would show what types of concessions can be demanded of large foreign groups to pass through a European scrutiny regime that now also covers financing, incentives and state support received outside the bloc.
