French Ministry Reviews JD.com's Bid to Acquire Major Stake in Fnac Darty

JD.com, the Chinese e-commerce giant, is undergoing a scrutiny process by the French Ministry of Economy as it seeks to become the second-largest shareholder in Fnac Darty. The Ministry requested JD.com to submit a prior authorization request to review this foreign investment, highlighting France's approach to safeguarding its economic interests in sensitive sectors like cultural goods.

JD.com is close to finalizing a €2.2 billion acquisition of Ceconomy, a German distributor that holds a 22% stake in Fnac Darty, second only to Czech billionaire Daniel Kretinsky's 28%. The Ministry confirmed JD.com submitted the authorization request recently. Under the review process, the Ministry has 30 days to evaluate the request's eligibility and can impose conditions if the investment proceeds. However, the overall review can take up to three months to complete.

This cautious approach reflects concerns about the influence of foreign investors in sectors critical to French culture and economy. Additionally, JD.com has already entered the French market with the launch of its online platform Joybuy, offering products ranging from electronics to food.

The review aims to balance attracting foreign investment with protecting national economic interests in a highly sensitive industry, ensuring any acquisition aligns with France's strategic priorities.