The European Commission on Wednesday issued a formal statement of objections to Chinese e-commerce giant JD.com regarding its proposed acquisition of German electronics retailer Ceconomy, intensifying its investigation into the deal under the EU’s Foreign Subsidies Regulation.
The Commission said the statement of objections is a formal step in the investigation, outlining in writing the concerns it has identified. The process gives JD.com an opportunity to respond before the EU reaches a final decision on the transaction.
The move marks increased scrutiny of foreign-backed acquisitions in the European Union and confirms an earlier Reuters report that regulators were preparing to raise objections over the proposed takeover.
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