China's JD.com may absorb MediaMarkt and Saturn, but must open its logistics to competitors

The European Commission on Tuesday approved the takeover of Germany's Ceconomy by the Chinese online retailer JD.com, on condition that JD.com honours its commitments, Business AM reports. Ceconomy is the parent of the electronics chains MediaMarkt, which also operates in Belgium, and Saturn, and according to Business AM forms Europe's largest specialist electronics chain. The deal is worth around 2.2 billion euros, or 2.5 billion dollars according to Euronext.

The investigation was carried out under the EU regulation on foreign subsidies, which applies to large takeovers by companies that received more than 50 million euros in foreign support in the preceding three years. The Commission found that JD.com had received subsidies, tax advantages and favourable financing from the Chinese state, and feared the company would use that support to push competitors out of the market with prices that were too low, writes Business AM.

JD.com must therefore handle all internal transactions with Ceconomy, including financing, on market terms, and offer its warehousing and logistics services to competing retailers on the same terms as to Ceconomy, Euronext reports. The company aims to complete the takeover by 12 November. China had threatened possible countermeasures during the European investigation, Business AM recalls.