JD Sports’ £90m Footasylum takeover halted by CMA

JD Sports shares have nose dived after the retailer's largest shareholder sold holdings worth £177 million.
// The CMA’s investigation into JD Sports’ acquisition of Footasylum puts a halt on the takeover
// In March, it was revealed that JD Sports would acquire Footasylum in a deal worth up to £90m

JD Sports’ £90 million proposed takeover of Footasylum has been put on pause by an ongoing investigation by the CMA.

The competition watchdog has issued an interim order against JD Sports proceeding any further with its takeover of Footasylum.

The CMA said in its latest ruling that it “wishes to ensure no action is taken pending final determination of the reference which might prejudice or impede the taking of any action by the CMA”.

READ MORE: £2m JD Sports flagship plan for Belfast

In March, it was revealed that JD Sports would acquire rival sportswear retailer Footasylum in a deal worth up to £90 million, and in April, the deal was given the green light by the majority of its shareholders.

The resulted in rival Sports Direct criticising the CMA over “inaccurate estimates” in its investigation into the takeover.

The investigation into the takeover began in May, but the CMA warned in October that the deal could “result in a substantial lessening of competition in any market or markets in the UK for goods or services”.

Meanwhile, Mike Ashley’s Sports Direct said that a Footasylum takeover would “likely to have wider market implications beyond this transaction, as they appear to highlight the power of the ‘must-have’ brands and potential market-wide practices aimed at controlling the supply and, ultimately, the pricing of their products”.

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