The German government is reviewing the Chinese company JD.com’s offer to acquire Ceconomy Group, owner of the popular consumer electronics chains MediaMarkt and Saturn, considering that the deal may pose a security threat, according to AFP on Tuesday.

The public purchase offer submitted by JD.com at the end of July falls under the scope of the German Foreign Trade and Payments Act, possibly also under the European Union’s scrutiny of economic concentration, as well as regulations on foreign financing that distort the internal market, according to a response from the German Ministry of Economy to a question posed by left-wing Die Linke party MP Ann-Michelle Bremer.

The review aims to determine whether the proposed deal could threaten “public order or the security of Germany or the European Union,” according to the document seen by AFP and published by Politico. The ministry clarified that “the procedure is still in its early stages.”

Ceconomy Group is the second largest shareholder in Fnac Darty, employs about 50,000 people, and generated revenues of 22.4 billion euros last year.

MP Bremer believes the Chinese company’s offer raises questions about “digital sovereignty, supply security, and democratic oversight.”

She called for a “clear strategy to protect vital sectors of the German economy.”

Under a law aimed at protecting its strategic interests from foreign interference, Germany in 2022 blocked the sale of two semiconductor companies to Chinese investors due to security concerns related to this vital sector. (AFP)