Chinese e-commerce company JD.com is expected to receive EU approval for its $2.5 billion bid for German electronics retailer Ceconomy after adjusting its commitments to address regulatory concerns. A source familiar with the matter told Reuters.
The European Commission is reviewing the deal under the rules on foreign subsidies. The question is whether JD.com received favorable financing, tax incentives and subsidies from the Chinese government that may have enabled a higher bid.
Following feedback from customers and competitors, JD.com has improved its previously proposed commitments. The European Commission is due to make a decision by November 4 at the latest.
The deal would give JD.com the opportunity to expand internationally through Ceconomy’s MediaMarkt and Saturn.
