Chinese ecommerce giant JD.com is moving closer to securing European Union approval for its proposed $2.5 billion takeover of German electronics retailer Ceconomy.
Reuters reported, citing a person familiar with the matter, that European regulators are set to approve the transaction.
Ceconomy controls major consumer electronics operations in Europe, making the takeover an important test of Chinese investment in the continent's retail sector.
For JD.com, the transaction could provide something difficult to build from scratch: an established network, recognizable retail businesses and direct access to millions of European consumers.
The move comes as Chinese companies increasingly search for growth overseas while competition in their domestic market remains intense.
Europe has simultaneously become more cautious about Chinese investment in strategically important industries.
That means the deal is being watched for reasons extending beyond retail.
If completed, it could strengthen JD.com's ability to compete in European ecommerce and consumer electronics while putting additional pressure on established online and physical retailers.
The acquisition would also underline how quickly the boundaries between Chinese and European retail markets are disappearing.
