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Austria Stalls JD.com’s Bid for MediaMarkt-Saturn Owner

Austria’s security review raises the risk of an Austria-only carve-out.

Overview

  • JD.com and Ceconomy said Austria’s investment-control authority raised concerns that have put the takeover timeline in doubt.
  • Competition regulators have cleared the deal, while France and Italy approved investment screening and Germany and Spain are expected to decide soon.
  • Ceconomy said the Austrian authority is blocking a search for solutions, while JD.com said it is working intensively with the regulator and still aims to close.
  • Companies and market reports say an exclusion of the Austrian unit is a realistic fallback, which could unsettle MediaMarkt stores, jobs, and customers in Austria.
  • JD.com seeks control of Ceconomy, Europe’s electronics retail giant with about €23.1 billion in revenue and 1,000+ stores, and has bolstered data safeguards to address national security reviews that are separate from antitrust checks.