European Commission raises objections to Chinese company's acquisition of German Seehafen Hamburg (SGH)

Brussels, July 22 (KUNA) -- The European Commission expressed its objections today to the acquisition of the German consumer electronics retailer MediaMarktSaturn by the Chinese e-commerce giant JD.com, as part of an escalation in its in-depth investigation into the deal. In a statement, the Commission said that the issuance of a statement of objections constitutes a formal procedure under the Foreign Subsidies Regulation, during which the companies concerned are informed of the concerns raised regarding them. It added that it had sent the statement of objections to JD.com as part of its ongoing in-depth investigation into the proposed acquisition of MediaMarktSaturn, emphasizing that this step does not determine the outcome of the investigation, as the Foreign Subsidies Regulation allows companies to offer commitments to address the Commission’s concerns. The Commission expressed concern over the possibility that the Chinese company may have benefited from preferential financing, tax incentives, and grants from entities potentially linked to the People’s Republic of China, which could strengthen the competitive position of the merged entity and negatively affect the EU’s internal market following the completion of the deal. The Commission opened an in-depth investigation last May to assess whether JD.com had received foreign subsidies that could distort competition in the EU’s internal market. The initial deadline for the Commission’s review of the deal is set for October 2, 2026. JD.com is part of a group of companies that operate retail stores and an e-commerce marketplace in China, while MediaMarktSaturn is a German retailer operating through traditional and online stores, specializing in consumer electronics and home appliances. (End) A.R.N. / F.L.A.