The European Union has opened an investigation into Chinese e-commerce giant JD.com’s proposed €2.2 billion takeover of German electronics retailer Ceconomy, which is the second-largest shareholder of French group Fnac Darty. Regulators suspect the bid may involve Chinese subsidies.
The European Commission announced on Thursday that it is examining the transaction under the bloc’s Foreign Subsidies Regulation – the first time a Chinese deal has been targeted under rules designed to prevent state-backed firms getting an unfair advantage in the EU's single market.
“JD.com may have received foreign subsidies distorting the EU internal market,” the Commission said in a statement, citing possible support including “preferential financing, tax incentives and grants” potentially attributable to the Chinese government.
Beijing-based JD.com – short for Jingdong – rejected the concerns, stating the acquisition would not be funded by foreign subsidies from China or any other state.
“We consider the in-depth review of a transaction of this scale to be a normal procedural step,” JD.com said in a statement to French press agency AFP, adding that its acquisition of Ceconomy would be financed “by bank loans and cash from our ordinary activities”.
French interest
Ceconomy owns the MediaMarkt, Saturn and MediaWorld chains, with more than a thousand stores across Europe, including in Germany, Italy, Spain and Austria.
The probe has also intensified scrutiny in France, where Ceconomy holds a 22 percent stake in Fnac Darty, a major entertainment and electronics retailer.
French Economy Minister Roland Lescure announced in November that JD.com had accepted conditions set by Paris for its stake in Fnac Darty. JD.com pledged to remain a “sleeping” shareholder, without intervening in the group’s governance or management.
According to a press release issued on 26 March, JD.com says it "has already received all necessary merger control clearances as well as foreign investment clearances in France".
Fnac Darty’s majority shareholder, Czech billionaire Daniel Kretinsky, who owns 28.5 percent of the capital, launched a public takeover bid earlier this year to gain control of the group.
JD.com, the third-largest online retailer in China after Alibaba and Temu, is pushing to expand internationally, particularly in Europe, to offset slowing domestic consumption and fierce price competition at home.
In March, the group launched its Joybuy platform in six European countries, including France, promising rapid delivery to challenge Amazon.
Under the Foreign Subsidies Regulation, the European Commission can impose fines, suspend tenders or block takeovers by state-funded firms.
The commission says it was officially notified about the Ceconomy acquisition on 17 April and "now has 90 working days, until 2 October 2026, to take a decision".
(with newswires)
