EU investigates JD.com’s $2.6 BN bid for Germany’s Ceconomy
The European Commission is launching an in-depth investigation into Chinese e-commerce giant JD.com’s €2.2 billion ($2.6 billion) bid to acquire German electronics retailer Ceconomy, reports the South China Morning Post. This comes amid mounting tensions between Brussels and Beijing.
A preliminary investigation showed that the Chinese firm could have received foreign subsidies that distorted the EU internal market, including “financing, tax incentives and grants” from China, the European Commission said in a statement.
“In particular, the commission preliminarily identified concerns that the potential foreign subsidies have enabled JD.com to offer conditions that potentially distorted the negotiation process related to the acquisition of Ceconomy,” the statement said.