March 30 (Reuters) - Austria's economy ministry on Monday denied it was being obstructive in approving a deal between German electronics retailer Ceconomy and Chinese e-commerce company JD.com,
JD.com warns Ceconomy takeover faces delay after scrutiny in Austria
By Matthias Inverardi and Alexandra Schwarz-Goerlich
Regulatory Challenges Facing JD.com's Ceconomy Acquisition
DUESSELDORF/VIENNA, March 30 (Reuters) - Chinese e-commerce giant JD.com warned on Monday that its planned takeover of German electronics retailer Ceconomy could be delayed beyond the first half of 2026 after coming under regulatory scrutiny in Austria.
Resubmission of Application and Austrian Response
JD.com said it was resubmitting an application for its $2.5 billion deal to take over Ceconomy with the Austrian authorities. Austria's economy ministry, meanwhile, issued a statement denying it was obstructing the deal.
Background of the Acquisition
JD.com announced it was acquiring Ceconomy last year in a deal that would give one of China's largest retailers scope to expand outside its home market.
Concerns Raised by Ceconomy
But Ceconomy warned last week that the approval process in Austria, where it operates 50 MediaMarkt brand stores, was in doubt. Its shares were down 4.4% at 1251 GMT on Monday.
JD.com’s Statement on Potential Delays
“Whether the transaction can be completed as previously planned in the first half of 2026 is questionable in light of current developments in Austria,” said a JD.com spokesperson.
Dispute Over Engagement in Austria
Ceconomy's Accusation
AUSTRIA DENIES CECONOMY ACCUSATION IT IS NOT ENGAGING
Ceconomy issued a statement on its website last week saying Austria's investment control authority, which sits under the economy ministry, "refused to engage in a joint solution-finding process".
Austrian Ministry's Rebuttal
Austria's economy ministry on Monday denied this was the case, adding that it was "irritated" by Ceconomy's statement.
It said it had been informed the application was being withdrawn but did not understand the specific intentions of the companies involved in the deal.
"Our authority is fully cooperative throughout the ongoing review process and is engaged in continuous discussions," the ministry said in a statement.
Austria’s Position on Investment and Security
The ministry said it wants to enable investment and jobs in Austria.
"At the same time, we scrutinise every case where our country's core interests are affected. Investment control ensures that acquisitions are reviewed where security, public order, critical infrastructure, and key technologies are at stake," it said.
Citing strict legal requirements regarding the confidentiality of the proceedings, the ministry declined to provide further details.
Approval Status in Other Countries
Italy has given conditional approval for the takeover, while Ceconomy expects Germany will also support the deal.
(Reporting by Matthias Inverardi, Alexandra Schwarz-Goerlich, Simon Ferdinand Eibach; writing by Matthias Williams; Editing by Miranda Murray and Joe Bavier)
