Procedure under Article 93 (2) of the Treaty will commence, as decided by the Commission.
The Federal Cartel Office has given its approval for the acquisition of Ceconomy, the parent company of MediaMarkt-Saturn, by the Chinese e-commerce giant JD.com. However, the deal is not yet finalized as it is still subject to the approval of the Federal Minister of Economics, Katarina Reiche (CDU).
If approved, the acquisition will make JD.com Europe's largest electronics retailer through its subsidiary MediaMarkt-Saturn. Ceconomy, with a turnover of 22.4 billion euros in the most recent financial year, has a significant online business, accounting for around a quarter of its total sales. The company operates in more than 1,000 markets in eleven European countries, with around 400 in Germany.
JD.com, particularly active in online trading and e-commerce logistics, has been marginally active in Europe so far, with online shops under the brand joybuy. The company plans to become the majority shareholder of Ceconomy, with an offer corresponding to an enterprise value of 4 billion euros.
The merger between JD.com and Ceconomy has few competitive contact points, according to the President of the Federal Cartel Office, Andreas Mundt. However, the security policy concerns of the Federal Minister of Economics could potentially prevent the acquisition from going through.
Ceconomy employs around 50,000 people worldwide, with around 17,000 in Germany. The majority of these employees are based in Germany, where the company operates under the main brands MediaMarkt and Saturn with a nationwide branch network and in online trading.
JD.com considers itself a globally leading technology and service company with a supply chain as its core and China's largest retailer by turnover. The company's annual turnover is approximately 159 billion US dollars.
The acquisition of Ceconomy by JD.com is significant as it marks the entry of a major Chinese e-commerce player into the European market. The final decision on the deal lies with the Federal Minister of Economics, who could veto the deal if she has security policy concerns.
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