Ceconomy

The Chinese government has banned companies from providing the European Commission with further information on JD.com’s takeover of Ceconomy (MediaMarkt‑Saturn), criticizing the information requests as unlawful extraterritoriality. The EU has been investigating since May whether foreign subsidies may have advantaged JD.com; many documents have already been submitted. The probe’s deadline runs until 23 October, while a parallel consultation process between Beijing and Brussels continues until the end of October. Through a voluntary offer JD.com holds around 60% of the shares; including agreements with major shareholders the buyer currently controls 82.5%. The transaction is valued at about €2.2 billion. » More on faz.net

For EU approval of the takeover of Ceconomy, JD.com offered concessions to the Commission, but no details were given. The EU Commission has been investigating possible subsidies from JD.com since May and set a provisional deadline of October 23 to conclude the review. The news weighed on Ceconomy stock, which in after-hours Tradegate trading was at times €3.85 and traded below its XETRA close. » More on finanzen.net

The EU Commission has been examining since May the planned takeover of Ceconomy by JD.com, in particular possible subsidies from China such as cheap loans, tax breaks and grants. China has criticized the information requests as excessive, threatened countermeasures and barred certain organisations and individuals from assisting the EU in investigations in China. JD.com denies the allegations; the case is developing into a power play over market rules and state aid. » More on zeit.de