Chinese e-commerce giant JD.com has secured approval from the European Commission for its proposed acquisition of German consumer electronics retailer Ceconomy, marking a major step towards completing its US$2.5 billion deal.

JD.com first announced the proposed acquisition in July last year. The deal aims to accelerate JD.com’s expansion in Europe by combining its e-commerce, technology and logistics capabilities with Ceconomy’s established retail network.

Ceconomy is the parent company of MediaMarkt and Saturn, which operate more than 1000 stores across Europe. Under the proposed arrangement, Ceconomy will retain its operational independence, local technology infrastructure and existing workforce.

“Our ambition is to support Ceconomy in accelerating its growth in a sustainable way, to further strengthen its competitive position in Europe and continue to innovate in an evolving retail market. This approval is positive news for the European retail market and its consumers,” said Sandy Xu, CEO of JD.com.

The transaction faced regulatory scrutiny from the European Commission, which launched an in-depth investigation in May under the EU’s Foreign Subsidies Regulation. Regulators raised concerns that potential Chinese government subsidies, including preferential financing, tax incentives and grants, could distort competition in the European market.

To address these concerns, JD.com committed to conducting transactions with Ceconomy on market terms and providing third-party retailers with equivalent access to its warehousing, logistics and technology services. These commitments will remain binding for 10 years and be monitored by an independent trustee.

According to JD.com, with all offer conditions now fulfilled, Ceconomy and JD.com will proceed to close the transaction by November 12.