JD.com's acquisition of Ceconomy approved by Germany's Bundeskartellamt

JD.com is planning to acquire Ceconomy, the parent company of MediaMarkt-Saturn, Europe's largest electronics retailer, and is expected to become its controlling shareholder. Germany's Bundeskartellamt (Bundeskartellamt) has approved the deal, finding it poses no competition law obstacles.

However, it still needs to undergo review by various agencies, including the Federal Ministry of Economics, and its final completion remains uncertain. JD.com's acquisition offer values Ceconomy at approximately €4 billion.

Andreas Mundt, director of the Bundeskartellamt (Bundeskartellamt), stated in a statement: "JD.com's current business activities in Germany are relatively limited, so this merger involves little competitive overlap and raises no competition law concerns." Besides Germany, JD.com also operates in the Netherlands through its subsidiary Ochama, and the transaction has been notified to the Netherlands Competition Authority (ACM).

Despite this, the acquisition still faces further scrutiny. The Bundeskartellamt is solely responsible for competition assessment, while German Federal Minister of Economics Katherina Reiche retains the right to veto the transaction on non-competition grounds, such as public safety and order.

The German Federal Ministry of Economics stated that JD.com's acquisition is subject to the Foreign Economic Law (AWG) and may be subject to EU merger review and the Regulation on Third Country Aids (EU 2022/2560) on internal market distortions.

The ministry emphasized that the investment review is still in its preliminary stages and that risk assessment is subject to administrative discretion. JD.com is a supply chain-based technology and services company with annual sales of approximately $159 billion (approximately €135 billion) in 2024.

It is China's largest retailer and possesses significant advantages in logistics and technological innovation. Ceconomy operates in 11 European countries with over 1,000 stores, nearly 400 of which are located in Germany.

In its last full fiscal year, the company achieved sales of €22.4 billion, approximately a quarter of which came from online channels. As of the end of September 2024, Ceconomy employed approximately 50,000 people worldwide, with 17,000 in Germany. Its MediaMarkt and Saturn brands are leading brands in the German consumer electronics retail market, with sizable online and offline operations.

For JD.com, this acquisition is a key step in advancing its strategic layout in the European market. It is expected to leverage Ceconomy's mature retail network to enhance its physical presence and omni-channel capabilities in Europe.