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

Chinese company JD.com seeks to gain substantial ownership in MediaMarkt-Saturn. The Federal Cartel Office approves this move. Yet, the transaction might encounter barriers.

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Procedure stipulated in Article 93 (2) of the Treaty will commence, as per the Commission's...
Procedure stipulated in Article 93 (2) of the Treaty will commence, as per the Commission's decision.

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

JD.com Acquires Majority Stake in Ceconomy: Expanding Presence in Europe

In a significant move, the Chinese e-commerce giant, JD.com, has secured the approval of the German competition authority, the Federal Cartel Office, to acquire a majority stake in Ceconomy, the parent company of MediaMarkt-Saturn. This deal marks JD.com's entry into Europe's largest electronics retailer and a substantial expansion of its physical retail presence in the continent.

JD.com, known for its logistics and technological expertise, has a revenue of 159 billion USD, making it one of the world's leading e-commerce companies. The company has been marginally active in Europe, with online shops under the brand joybuy. However, with the acquisition of Ceconomy, it is set to make a significant impact.

Ceconomy operates under the main brands MediaMarkt and Saturn, with a nationwide branch network and in online trading. At the end of September 2024, Ceconomy employed around 50,000 people worldwide, around 17,000 of them in Germany. The acquisition grants JD.com control over Ceconomy's assets, including the MediaMarkt and Saturn networks in Germany, which together operate around 1000 electronics stores in Europe.

The Federal Cartel Office, responsible for examining the competitive effects of mergers and acquisitions, has deemed the deal to have few points of contact in terms of competition. The Office has pointed out that JD.com is particularly active in the areas of online trading and e-commerce logistics, while Ceconomy operates in more than 1,000 markets in eleven European countries, with around 400 of them in Germany.

However, the deal is not final. Federal Minister of Economics Katharina Reiche (CDU) could still veto it if she has security policy concerns. Reiche has the power to block the deal if she believes it poses a threat to national security.

JD.com sees itself as 'a globally leading technology and service company with a supply chain as its core and China's largest retailer by revenue.' The company plans to leverage its expertise in logistics and technology to enhance the operations of MediaMarkt-Saturn. The stores will remain operational under their existing brands and no planned closures are part of the deal.

In the most recent full fiscal year 2023/24, Ceconomy generated revenue of 22.4 billion euros, of which around a quarter was from online business. This acquisition presents an opportunity for JD.com to tap into Ceconomy's substantial online presence and customer base.

The deal values Ceconomy at 4 billion euros, a significant investment for JD.com as it seeks to establish a stronger foothold in Europe. As JD.com continues to grow, it is clear that the company is committed to becoming a global player in the e-commerce industry.

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