EU approves JD.com takeover of MediaMarkt's parent company
The European Commission has cleared the €2.2bn purchase of Ceconomy, owner of MediaMarkt, by the Chinese group JD.com, but only with ten-year commitments to prevent unfair competition.
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Illustrative photo: Fred Romero from Paris, France / CC BY 2.0.jpg){kind=link}
The Chinese company JD.com can now buy Ceconomy, the German parent of MediaMarkt, MediaWorld and Saturn. The European Commission approved the deal, for which JD.com pays about €2.2bn, on the condition that JD.com keeps to a set of commitments.
The commitments cover funding and competition. In short, neither JD.com nor Ceconomy may gain an unfair competitive advantage. They apply for ten years, and an independent party will monitor compliance.
The Commission attached the conditions because it found that JD.com had received support from the Chinese government, including tax breaks and subsidies. That support could distort competition on the European market.
Ceconomy has about 50,000 employees and more than 1,000 stores across Europe. JD.com is registered in the Cayman Islands and listed in Hong Kong.
European Commissioner Teresa Ribera said all parties were constructive and that consumers benefit from a competitive retail and e-commerce sector.
JD.com chief executive Sandy Xu welcomed the decision: "This approval is good news for European retail and its consumers."
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Ceconomy
Ceconomy is a German holding company for consumer electronics retail. It is the parent company of the MediaMarkt, MediaWorld and Saturn store chains, which sell electronics, household appliances and related products in several European countries, including the Netherlands through MediaMarkt. Ceconomy's ownership is a business matter rather than a government body, so changes to who controls it, such as a takeover, are reviewed by competition authorities like the European Commission.