• Parties locked in discussions to improve remedy offer
• Third parties don’t want to become dependent on JD.com
• Impact of Chinese non-cooperation order likely limited

JD.com’s offer to open access to its logistics and technology in Europe to obtain European Commission (EC) clearance for its takeover of Ceconomy has sparked negative feedback from rivals, according to two sources familiar with the matter.

The Commission and the merging parties are now locked in last-ditch discussions to see how the offer could be improved, according to the first source, and a third source familiar with the matter.

A commitment by the Chinese e-commerce giant to offer access under fair, reasonable and non-discriminatory (FRAND) terms to its European warehouses and technology does not appeal to the companies that could theoretically benefit from it because the last thing they want is to become dependent on JD.com, the second source said.

The company made a remedy offer on 18 August that was sent to third parties for market feedback, as reported by this news service.

On top of FRAND access to rivals, the offer also included a commitment to charge Ceconomy for the use of JD.com’s large European logistics business and its technology on market terms.

The remedy offer coincided with a non-cooperation order from the Chinese government related to the FSR review of Ceconomy/JD.com, but this news service argued that the impact of this development in the remedy process is likely limited.

Following the automatic timeline extension triggered by the remedy offer, the deadline for the EC to complete its in-depth review of the acquisition is set for 23 October, while the EUR 2.4bn deal has a hard long-stop date of 10 November.

The European Commission, JD.com and Ceconomy declined to comment.