By Foo Yun Chee BRUSSELS, April 22 (Reuters) - EU competition regulators are assessing whether Chinese e-commerce giant JD.com's $2.5 billion bid for German electronics retailer Ceconomy involves
EU Regulators Assess JD.com’s $2.5 Billion Ceconomy Deal for State Subsidies
Overview of the JD.com-Ceconomy Acquisition and EU Scrutiny
By Foo Yun Chee
EU Commission's Assessment of the Deal
BRUSSELS, April 22 (Reuters) - EU competition regulators are assessing whether Chinese e-commerce giant JD.com's $2.5 billion bid for German electronics retailer Ceconomy involves Chinese subsidies, according to a European Commission filing.
Preliminary Probe and Potential Full-Scale Investigation
The Commission, which acts as the EU competition enforcer, set a May 28 deadline for its preliminary probe. It can open a full-scale investigation at the end of this period if it has deeper concerns which may require concessions from JD.com.
Regulatory Framework and Implications
Foreign Subsidies Regulation
The European Union review is under its Foreign Subsidies Regulation which targets unfair foreign state aid. The acquisition does not need to be examined under EU merger rules.
National and International Regulatory Responses
Scrutiny in Austria
The deal, which will allow one of China's largest retailers to expand outside its home market with the acquisition of Ceconomy-owned electronic products retailers MediaMarkt and Saturn, already faced a hurdle in Austria because of regulatory scrutiny under national foreign direct investment rules.
Approval in Italy
The Italian government has already given the green light for the deal.
(Reporting by Foo Yun Chee; Editing by Emelia Sithole-Matarsie)
