EU probes JD.com's Ceconomy acquisition

The International — European Commission>>> has launched an in-depth investigation into Chinese e-commerce giant JD.com>>>'s proposed $2.5 billion acquisition of German electronics retailer Ceconomy>>>. The probe, the first of its kind under the EU's Foreign Subsidies Regulation for a Chinese deal, aims to determine if JD.com>>> received distortive foreign subsidies from the China — State Council of China>>> through preferential financing, tax incentives, and grants. Regulators are concerned that such subsidies could allow JD.com>>> to offer a higher price for Ceconomy>>> and support its European operations, potentially distorting competition in the European Union>>>'s internal market. JD.com>>> has denied receiving foreign subsidies, stating the deal is financed by private bank debt and cash. The acquisition would allow JD.com>>> to expand into Europe via Ceconomy>>>'s brands like MediaMarkt>>> and Saturn. The International — European Commission>>> has set an October 2 deadline for its decision, with the possibility of requiring concessions from JD.com>>>.