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CMA blocks JD Sports' Footasylum deal on appeal
2nd Sep 2021 07:43
(Sharecast News) - The UK's competition regulator has reiterated its decision to block JD Sports Fashion's takeover of Footasylum and has called for JD to sell the business.
The Competition and Markets Authority ruled against the takeover in May 2020, prompting JD to appeal. The Competition Appeal Tribunal sent the case back to the CMA.
The CMA said after gathering new evidence its provisional view was that consumers could lose out in the shape of higher prices, fewer products in stores and worse customer service. Forcing JD to sell Footasylum may be the only way to remedy these concerns, it said.
JD said it was "perplexed" by the decision and was committed to improving Footasylum's product range and customer proposition.
Kip Meek, who chairs the group conducting the CMA's inquiry, said: "Since our original inquiry, we have gathered a significant amount of additional evidence, including on the impact of coronavirus, and we still have concerns about JD Sports' takeover of Footasylum. This deal would see Footasylum bought by its closest competitor and, as a result, shoppers could face higher prices, less choice and a worse shopping experience overall."
The CMA is asking for views on its provisional report by 16 September and possible remedies by 9 September.
The Competition and Markets Authority ruled against the takeover in May 2020, prompting JD to appeal. The Competition Appeal Tribunal sent the case back to the CMA.
The CMA said after gathering new evidence its provisional view was that consumers could lose out in the shape of higher prices, fewer products in stores and worse customer service. Forcing JD to sell Footasylum may be the only way to remedy these concerns, it said.
JD said it was "perplexed" by the decision and was committed to improving Footasylum's product range and customer proposition.
Kip Meek, who chairs the group conducting the CMA's inquiry, said: "Since our original inquiry, we have gathered a significant amount of additional evidence, including on the impact of coronavirus, and we still have concerns about JD Sports' takeover of Footasylum. This deal would see Footasylum bought by its closest competitor and, as a result, shoppers could face higher prices, less choice and a worse shopping experience overall."
The CMA is asking for views on its provisional report by 16 September and possible remedies by 9 September.