EU approves JD.com takeover of MediaMarkt parent Ceconomy

The European Commission has approved JD.com’s €2.2 billion takeover of Ceconomy, the German parent company of MediaMarkt and Saturn, clearing the deal’s final outstanding regulatory hurdle.

The Commission had investigated whether Chinese state subsidies could give JD.com an unfair advantage. It approved the acquisition under the EU’s Foreign Subsidies Regulation after the companies offered safeguards, including guarantees that Ceconomy would not receive preferential treatment on JD.com’s platforms for financing or logistics services.

Ceconomy operates about 1,067 stores and employs roughly 50,000 people, according to the report. Its most recent financial year, which ended in September, brought in €24 billion in revenue. MediaMarkt has more than 50 stores in the Netherlands.

Ceconomy chief executive Remko Rijnders said the partnership with JD.com was becoming a reality. The companies say there will be no job cuts or store closures as a result of the takeover. JD.com says it intends to help Ceconomy grow and strengthen its position in Europe.