By Aimee Look
German consumer-electronics retailer Ceconomy said its $2.6 billion acquisition by China's JD.com is facing uncertainty over its foreign investment clearance in Austria.
The Beijing-based e-commerce group made a bid to purchase a slice of Ceconomy, in a push to bolster its international presence. JD.com and partner Convergenta would together hold a 70.9% stake in the retailer, JD.com previously said.
When announced in July, the deal valued Ceconomy at around 2.23 billion euros, or 4.6 euros a share.
Now, the acquisition might be at odds with meeting the required foreign direct investment clearance in Austria, according to Ceconomy.
In Italy and France, FDI clearances have already been obtained, and Ceconomy expects further clearances in Germany and Spain in the near term. But in Austria, it is uncertain whether or when foreign investment clearance will be granted, Ceconomy said.
"Ceconomy and JD.com remain in close dialogue with the Austrian Federal Ministry of Economy, Energy and Tourism in order to satisfy the conditions for obtaining the clearance and to facilitate the successful completion of the Transaction," Ceconomy said.
JD.com and Austria's Ministry of Economy, Energy and Tourism didn't immediately reply to a request for comment.
JD.com is making a push into Europe, up against rising competition from Alibaba and PDD Holdings in China, HSBC analysts said last year. The company has bolstered investment in local-to-local e-commerce in France, the U.K. and Germany, the analysts said.
Write to Aimee Look at aimee.look@wsj.com
(END) Dow Jones Newswires
03-30-26 0211ET
