Germany approves Chinese takeover of MediaMarktSaturn with conditions

Germany's Federal Ministry for Economic Affairs has granted approval for the acquisition of MediaMarktSaturn, Europe's largest electronics retailer, by the Chinese company JD.com.

The approval, however, is subject to specific conditions designed to safeguard German customer data and ensure the federal government retains significant oversight and control. The ministry stated that these conditions allow for the revocation of approval if violations occur. The investment review process focused on whether the takeover would negatively impact the public order or security of the Federal Republic.

JD.com welcomed the decision, expressing anticipation for full approval in the second half of the year. "We welcome the foreign trade law clearance by the Federal Ministry for Economic Affairs and Energy," the company said.

Meanwhile, the European Commission is conducting its own parallel investigation. The Commission has expressed preliminary concerns that JD.com may have benefited from foreign subsidies that could distort the EU's internal market. These subsidies might have enabled JD.com to submit a more competitive bid for Ceconomy, MediaMarktSaturn's parent company, potentially skewing the acquisition process. The Commission will also assess whether the takeover would harm competition within the European single market. A final decision from the Commission is expected by October 2.

MediaMarktSaturn is a major player in the European electronics retail landscape, ranking as the fourth-largest online retailer in Germany after Amazon, Otto, and Zalando. Ceconomy, its parent company, was spun off from Metro in 2017. JD.com acquired a majority stake in Ceconomy shares after submitting a takeover bid last summer. While authorities in France, Italy, and Germany have already approved the deal, decisions from Spain and Austria are still pending.

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We welcome the foreign trade law clearance by the Federal Ministry for Economic Affairs and Energy.