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EU Flags Foreign Subsidy Concerns in JD.com's Ceconomy Deal

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The European Commission raised preliminary objections to JD.com's (NASDAQ:JD, HKG:9618) proposed $2.5 billion acquisition of German retailer Ceconomy, according to a Wednesday statement.

The commission said JD.com may have benefited from Chinese government support, including preferential financing, tax incentives and grants, potentially giving the combined company an unfair competitive advantage after the acquisition.

The objections are preliminary and do not prejudge the outcome of the investigation.

A statement of grounds is a formal step in the investigation that outlines the Commission's preliminary concerns.

The Commission's provisional deadline to complete its review is Oct. 2.

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