Jingdong.com plans to acquire Seconomy for €2.2 billion amidst EU concerns

Jingdong.com is planning to acquire the European electronics retailer Seconomy for 2.2 billion euros. The company is reportedly set to present improved remedial measures to alleviate concerns raised by the European Union regarding the acquisition. According to ZDNet Korea, sources familiar with the matter noted that Jingdong.com is currently in discussions with regulatory authorities reviewing the deal under the EU Foreign Subsidies Regulation (FSR).

The company is working on modifying its original remedial proposals to ensure that its logistics and technology assets maintain competitiveness. This development follows concerns raised by competitors during the initial market testing of the proposed measures. Sources indicate that the revised remedial plan could lead to conditional approval of the deal by the review deadline on October 23.

Should the EU's concerns be addressed, Jingdong.com may strengthen its plans to expand operations beyond China. According to Seconomy's annual report from last year, the company operates approximately 1,067 stores under brands such as MediaMarkt and MediaWorld, with 403 located in Germany, 145 in Italy, 111 in Spain, and 54 in Austria.

Jingdong.com's acquisition proposal states that Seconomy will remain an independent entity post-acquisition, with no changes expected to its workforce. The European Commission initiated a comprehensive review of the transaction under the FSR in May, marking the first application of the recently introduced regulation targeting deals involving Chinese companies. The regulation aims to prevent companies receiving state financial support from distorting fair competition in the EU market.