Chinese e-commerce leader JD has secured conditional approval from the European Union for its 2.2 billion euro ($2.5 billion) acquisition of German electronics retailer Ceconomy, clearing a major regulatory hurdle as the company accelerates its expansion into Europe.
The European Commission said on Tuesday that it had approved the takeover under the bloc's Foreign Subsidies Regulation, subject to commitments aimed at preventing unfair competition.
JD Chief Executive Sandy Xu welcomed the decision, calling it "positive news for the European retail market and its consumers". She said the company aimed to support Ceconomy's sustainable growth, strengthen its competitive position, and drive innovation in European retail.
Under the conditions, JD must offer warehousing, logistics, and technology services to third-party retailers on the same terms as those provided to Ceconomy. Transactions between the two companies — including financing — must also be conducted on market terms.
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The commitments will remain in force for 10 years and be monitored by an independent trustee.
The approval removes the final regulatory obstacle to the acquisition, which the companies expect to complete in the coming days.
Headquartered in Germany, Ceconomy is one of Europe's largest consumer electronics retailers, operating more than 1,000 stores under brands including MediaMarkt and Saturn.
The acquisition marks a significant step in JD's overseas expansion as Chinese retailers seek new growth opportunities amid fierce competition at home.
In March, JD launched its Joybuy online retail platform in six European markets — Britain, Germany, France, the Netherlands, Belgium, and Luxembourg — backed by its JoyExpress delivery network.
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The company is betting on its logistics and supply chain capabilities to compete with established European retailers and global e-commerce rivals, including Amazon.
