EU approves Chinese takeover of MediaMarkt-Saturn
The European Commission has approved the acquisition of German electronics retailer MediaMarkt-Saturn by Chinese conglomerate JD.com. The approval, announced Tuesday, allows JD.com to purchase majority stakes in Ceconomy AG, the parent company of MediaMarkt-Saturn. However, the commission stipulated that JD.com cannot receive Chinese subsidies or unfair advantages as a result of the acquisition, requiring the company to address any potential competitive distortions.
Brussels had previously expressed concerns that JD.com benefits from Chinese subsidies, including tax advantages and state loans, which fund parts of its logistics and IT systems. The commission feared that MediaMarkt-Saturn would unfairly benefit from these resources, disadvantaging competitors in Europe.
To mitigate these concerns, the EU Commission requires JD.com to offer its logistical services, warehouses, and technologies to other market participants on the same terms as Ceconomy, including MediaMarkt and Saturn. Any financing from JD.com for Ceconomy must also adhere to standard market conditions, effectively neutralizing any potential subsidy-related advantages.
Ceconomy and JD.com initially announced the acquisition last year. JD.com currently holds 59.8 percent of the shares and voting rights. A holding company of the Kellerhals family retains a 25.4 percent stake and has committed to voting in alignment with JD.com, effectively giving the Chinese company control of over 85 percent.
Both companies have stated that the business model of MediaMarkt-Saturn will remain unchanged for the time being. “What makes Ceconomy successful today will continue to drive success in the future,” JD and Ceconomy stated in a joint announcement. The current leadership team at Ceconomy is expected to remain in place.
Ceconomy CEO Remko Rijnders welcomed the decision, stating that it allows for the concrete implementation of the merger to begin. JD.com CEO Sandy Xu emphasized that Ceconomy will accelerate its growth “in a sustainable way,” with a focus on innovation in the evolving retail landscape.
Ceconomy operates MediaMarkt and Saturn stores in Germany and other European countries, as well as the combined online shop. JD.com, according to the Federal Cartel Office, is “China’s largest retailer by revenue” and competes in online retail with companies like Alibaba.
Source
“Mediamarkt-Saturn: EU-Kommission genehmigt chinesische Übernahme”
Read the original report (in German) ↗This story is an AI-assisted version of the original report, checked and edited by the Plainwire desk before publication. Read our editorial policy · Report an error
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