EU approves JD takeover of Germany's Ceconomy

The European Union has granted Chinese e-commerce giant JD.com conditional clearance for its 2.2-billion-euro ($2.5 billion) acquisition of German electronics retailer Ceconomy.

The European Commission announced on Tuesday it had cleared the deal under the bloc's Foreign Subsidies Regulation, subject to commitments designed to prevent unfair competition.

Under the conditions imposed, JD must provide warehousing, logistics, and technology services to third-party retailers on the same terms offered to Ceconomy. All transactions between the two, including financing, must be conducted at market rates, and an independent trustee will monitor compliance for 10 years.

The EU's Foreign Subsidies Regulation is a framework designed to protect European businesses from unfair competition. The regulation allows Brussels to scrutinize financial support that companies receive from foreign governments when those enterprises pursue major acquisitions within the bloc. The commission had raised concerns that such support could allow an acquiring company to outbid European rivals or gain an unfair advantage after a deal closes.

The acquisition is expected to complete soon, with JD targeting Nov 12 to close the deal.

Ceconomy operates more than 1,000 stores across Europe under the MediaMarkt and Saturn brands, making it one of the continent's largest consumer electronics retailers.

JD launched its Joybuy online retail platform in six European markets earlier this year, including Belgium, France, and Germany, backed by its Joy-Express delivery network.