This marks another classic case of a Chinese company expanding into Europe, highlighting that the challenges in entering new markets extend beyond visible regulations to the intricate web of European capital. How Chinese firms can break through invisible cultural barriers and build trust remains a long-term topic.
In July, JD.com officially announced its intention to acquire Germany's largest electronics retailer, Ceconomy, for approximately €2.2 billion (around RMB 18.5 billion). This stands as one of the largest Chinese acquisitions in Europe in recent years and one of the biggest Chinese investments in the European retail sector. By September, Germany's Federal Cartel Office (Bundeskartellamt) had approved JD.com's acquisition of a controlling stake in Ceconomy, clearing the path for the deal.
While JD.com, a Chinese e-commerce giant, is acquiring a German company, the deal has significant French implications since Ceconomy is the second-largest shareholder in French cultural electronics retailer Fnac Darty. Unsurprisingly, this has sparked French concerns about the economic and cultural impact of the acquisition.
Since September, JD.com's indirect stake in Fnac Darty as the second-largest shareholder has drawn widespread attention in France. Last week, JD.com agreed to conditions set by France's Ministry of Economy and Finance: both JD.com and Ceconomy pledged not to increase their stakes in Fnac or influence its governance and management decisions.
French Minister of Economy and Finance Roland Lescure stated, "We are transitioning from a German shareholder to a Chinese one, but this will not affect the existing governance or management." The Chinese second-largest shareholder committed to remaining a passive investor—a move aimed at alleviating public concerns.
Lescure explained that Fnac, unlike other retailers, carries cultural significance for France. He emphasized that JD.com must fully recognize Fnac's cultural role, hence the imposed conditions. Additionally, France expects Fnac Darty to sell French-made appliances, reflecting concerns about Chinese manufacturing overshadowing local production.
**Cultural Clash Behind the Acquisition?** Fnac Darty, which prompted France's unusual "additional conditions," traces its roots to 1954 as the "Fédération Nationale d'Achats Cadres," founded to offer discounted quality goods to improve workers' lives. Darty, a well-known French electronics chain established in 1957, merged with Fnac in 2016. In 2024, Fnac Darty reported €8.25 billion in sales, with a shareholder mix of strategic investors, institutions, and retail investors (22%). The retailer operates across Europe, selling books, music, and electronics online and offline.
Fnac and Darty's strong brand presence and French heritage make them symbols of national pride, fueling public worry that the JD.com deal could threaten France's "cultural sovereignty." Fnac is France's top bookseller and one of Europe's fastest-growing e-commerce platforms.
In September, France required JD.com to undergo a review process for "sensitive sectors," typically lasting 45 days to three months—though this may not apply here. Fnac Darty CEO Enrique Martinez clarified that Ceconomy has no board representation or governance influence, ensuring strategic continuity.
Currently, Fnac Darty's largest shareholder remains Czech billionaire Daniel Kretinsky (28% via Vesa Equity Investment), who expanded into retail and media after building energy giant EPH. Unlike JD.com, Kretinsky faces no restrictions on increasing his stake or exerting influence.
**Europe’s Capital Playground** JD.com's €2.2 billion bid for Ceconomy—which operates nearly 1,000 stores, including MediaMarkt and Saturn—aims to penetrate Europe's retail core. In 2017, France's Pinault family sold their 24.33% Fnac-Darty stake to Ceconomy for €452 million to focus on luxury (e.g., Gucci via Kering). Ceconomy's then-CEO Pieter Haas hailed the deal as a gateway to France's vibrant electronics market and e-commerce leadership.
JD.com plans to complete the acquisition in two phases: securing 45.5% by November 10 and another 29% by November 27. Convergenta (25.3%, held by Germany's Kellerhals family) and JD.com will jointly govern. The full acquisition, potentially reaching 75%, is expected by mid-2026, pending EU and other regulatory approvals.
JD.com pledged no layoffs, store closures, or management changes, maintaining European tech infrastructure and data centers.
**JD.com’s European Ambitions** JD.com first eyed France in 2018, pledging to sell €2 billion in French goods in China and opening a Paris office. However, it retreated in 2020 amid competition from Amazon, Cdiscount, and others. Now, JD.com is quietly relaunching in Europe via Joybuy, an e-commerce platform promising same-day delivery in the UK and France—a rarity locally. Despite low app rankings, JD.com is scaling logistics, leasing 60,000 sqm of warehouse space near Paris.
French media, like *Le Monde*, warn of JD.com "harming Europe’s market" under Shein's shadow, even as JD.com hires aggressively to rival Amazon. Experts, however, see mutual benefits: European e-commerce could gain from JD.com's tech prowess, while JD.com leverages Ceconomy’s consumer insights and supply chains.
This deal underscores how Europe’s corporate landscape is interwoven with cross-border capital. While intra-EU deals face fewer hurdles, Chinese acquisitions like JD.com’s demand time to build trust—with win-win cooperation as the ideal outcome.
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