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Initiating the process outlined in Article 93 (2) of the Treaty, as determined by the Commission.

Chinese business empire JD.com stands to seize a substantial shares in MediaMarkt-Saturn, following clearance from the Federal Cartel Office. Nevertheless, potential obstacles may yet emerge in this transaction.

,   and  Administrator
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Procedure under Article 93 (2) of the Treaty will be commenced by the Commission.
Procedure under Article 93 (2) of the Treaty will be commenced by the Commission.

Initiating the process outlined in Article 93 (2) of the Treaty, as determined by the Commission.

JD.com, a globally leading technology and service company, is making a significant move into Europe. The Chinese e-commerce giant has announced plans to acquire Ceconomy, the parent company of MediaMarkt-Saturn, marking a major step in JD.com's European expansion.

Currently, JD.com has been marginally active in Germany, with online shops under the brand joybuy. However, with this acquisition, JD.com is aiming to gain access to European retail and logistics infrastructure, particularly focusing on Germany where it had minimal prior presence.

Ceconomy, operating in more than 1,000 markets in eleven European countries, with around 400 of them in Germany, is a significant player in the region. The company, which operates under the main brands MediaMarkt and Saturn with a nationwide branch network, reported sales of 22.4 billion euros in its most recent full fiscal year 2023/24, with a quarter coming from online business.

The deal, valued at around 2.2 billion euros, will make JD.com the majority shareholder of Ceconomy, corresponding to an enterprise value of 4 billion euros. JD.com, together with the Kellerhals Group, currently holds a majority stake of 57.1% in Ceconomy. Further acquisitions are considered likely as part of a long-term expansion strategy.

At the end of September 2024, Ceconomy employed around 50,000 people worldwide, including around 17,000 in Germany.

The deal is subject to potential veto by Federal Minister of Economics Katarina Reiche if she has security policy concerns. However, at present, the deal does not currently raise any competition law concerns in Germany. The Federal Cartel Office, solely responsible for examining the competitive effects of mergers and acquisitions, has not yet expressed any competition law concerns about the deal.

This move by JD.com is a strategic one, as it aims to become the largest electronics retailer in Europe through MediaMarkt-Saturn. The acquisition will give JD.com a strong foothold in Europe's largest electronics retail market, providing it with an opportunity to leverage its expertise in online trading and e-commerce logistics to drive growth in the region.

As JD.com continues to expand its operations in Europe, it is expected to face challenges and opportunities alike. The company's success will depend on its ability to navigate the complex regulatory landscape, address cultural differences, and adapt to the unique market conditions in each European country.

Stay tuned for more updates as this story unfolds.

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