BRUSSELS (dpa-AFX) - The proposed takeover of Europe's largest electronics retailer, MediaMarktSaturn, by Chinese e-commerce giant JD.com is facing scrutiny from multiple regulatory bodies. Following an initial investigation, the European Commission has raised 'preliminary concerns' and is now conducting a more detailed review. Its approval is a mandatory prerequisite for the change in ownership.

'The preliminary investigation suggests that JD.com may have received foreign subsidies that distort the EU internal market,' the Brussels-based authority stated. Chinese subsidies may have enabled JD.com to submit a higher takeover bid for Ceconomy, the parent company of MediaMarkt and Saturn, potentially distorting the bidding process. The investigation focuses on preferential financing, tax incentives, and grants.

The EU Commission also intends to examine whether the acquisition would impair competition within the European single market. Under EU law, the Commission has until October 2 to reach a final decision, though it emphasized that the outcome remains open. During the investigation, JD.com may offer specific commitments to mitigate potential competitive distortions.

Authorities review antitrust and security implications

JD.com launched its takeover bid last summer and secured a majority stake in Ceconomy shares a few months later. Authorities in several countries are currently reviewing the transaction. Depending on national requirements, the deal is being scrutinized under antitrust laws, while other jurisdictions are assessing whether the entry of a foreign investor poses any risks to national security or public order.

According to Ceconomy, France and Italy have already given the green light for the acquisition. Decisions from Germany, Spain, and Austria are still pending. Corporate sources indicate that a comprehensive clearance is expected in the second half of the year.

Germany's Federal Cartel Office (Bundeskartellamt) cleared the acquisition as early as September, citing no antitrust concerns given JD.com's limited presence in Germany to date. However, the Federal Ministry for Economic Affairs has yet to grant its approval, as it continues to review the deal from a security policy perspective.

One of the world's largest retail groups

MediaMarktSaturn is Europe's leading electronics retailer and the fourth-largest online shop in Germany, trailing only Amazon, Otto, and Zalando. Ceconomy, which now houses the MediaMarktSaturn Retail Group, was formed in 2017 following a demerger from Metro.

With annual sales of nearly 159 billion US dollars (2024), JD.com is China's largest retail group according to the EHI Research Institute and ranks among the top ten globally. The group, which employs approximately 570,000 people, also operates in technology, logistics, and healthcare. Its footprint in Germany has been modest thus far; in March of this year, JD.com launched its online shop, Joybuy.

According to its annual report, Ceconomy operates more than 1,000 stores across eleven European countries, with approximately 400 located in Germany. The Saturn brand now exists exclusively in the German market. In the fiscal year ending in September, the company generated revenue of 23.1 billion euros. In 2024, the group employed around 50,000 people worldwide, including nearly 20,000 in Germany.

The first Saturn store opened in Cologne in 1961, followed by the first MediaMarkt in Munich in 1979. The retail chain acquired its competitor Saturn in 1990. A few years later, Metro AG acquired a majority stake in both brands./wea/DP/men