The European Commission has formally informed Chinese e-commerce giant JD.com of regulatory concerns over its €2.2 billion (£1.9bn) buyout offer for German electronics retailer Ceconomy, in a move that could result in significant commitments by the Chinese firm.
In May the Commission began a full-scale review of the transaction under the Foreign Subsidies Regulation, designed to prevent companies receiving foreign state backing from acquiring European assets and distorting competition.
Regulators said at the time that JD.com foreign support may have included “preferential financing, tax incentives and grants” provided by entities that may be attributable to the Chinese state.
Ceconomy operates the MediaMarkt, MediaWorld and Saturn retail chains. Image credit: Unsplash
Subsidy concerns
