The European Commission has notified JD.com (HKG:9618) of its preliminary objections over the Chinese e-commerce company's proposed $2.5 billion acquisition of German electronics retailer Ceconomy.
"The issuing of a statement of grounds is a formal step in an investigation under the Foreign Subsidies Regulation where the Commission informs the companies concerned in writing of the objections raised against them," the statement said.
The Commission opened an in-depth investigation in May to assess whether JD.com had received foreign subsidies that could distort competition in the EU's internal market.
It said it has concerns that JD.com may have benefited from preferential financing, tax incentives and grants attributable to the Chinese government.
The Commission said those subsidies could strengthen the merged company's competitive position and negatively affect competition in the bloc after the transaction.
JD.com announced the all-cash takeover offer for Ceconomy in July 2025, offering 4.60 euros per share.
The deal aims to combine JD.com's e-commerce, logistics and technology capabilities with Ceconomy's consumer electronics retail business, which operates more than 1,000 MediaMarkt and Saturn stores across 11 European countries.
Under the investment agreement, Ceconomy would continue operating as a standalone business in Europe with its existing workforce, employee agreements and sites.
The European Commission's provisional deadline to complete its review is Oct. 2.
