Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

JD Sports must sell Footasylum after all, UK regulator says

11/04/2021 | 07:51am EST
FILE PHOTO: A JD Sports sign at one of the company's London stores

(Reuters) -Britain's largest sportswear retailer JD Sports must sell Footasylum, a UK watchdog said on Thursday after a second investigation found the combination could leave consumers worse off even after considering stiff online competition amid the pandemic.

The Competition and Markets Authority (CMA) started investigating JD's 86 million pound ($116.72 million) purchase of Footasylm in 2019 and ordered it to unwind the merger in May last year. JD successfully appealed that decision, with the regulator considering the impact of COVID-19 on shopping habits as it reassessed its findings.

However, the CMA said that the evidence it has analysed showed that the two companies are adapting well to market conditions and they would still thrive should the merger not go ahead.

"The pandemic may have altered the way we shop but innovative businesses, driven by healthy competition, will rise to the challenge and successfully cater to changing tastes and habits," CMA Chair of the inquiry group Kip Meek said in a statement on Thursday.

JD Sports, which sells brands such as Nike, Adidas and Puma in its physical and online stores, has argued the COVID-19 pandemic has only increased competition, as global brands expand their direct-to-consumer businesses.

JD Chairman Peter Cowgill said the regulator's decision on Thursday remains "inexplicable" to anyone who understood how the pandemic has affected UK retail.

"It is deeply troubling at a time when the UK high street has been seriously damaged already and is vulnerable to further closures," Cowgill added.

JD has six weeks to send to the CMA their promise to sell Footasylum, a process that the CMA will oversee, or the British regulator will put in place a legally enforceable order.

The retailer said it was studying the report in detail and would carefully consider its options. It has a four week window to appeal the decision if it wishes to do so.

($1 = 0.7368 pounds)

(Reporting by Aby Jose Koilparambil, Sachin Ravikumar and Yadarisa Shabong in Bengaluru; Editing by Ramakrishnan M., Kirsten Donovan)

By Yadarisa Shabong


ę Reuters 2021
Latest news "Economy & Forex"
03:30pUkraine receives second batch of U.S. weapons in Russian stand-off
RE
03:22pBelgian police fire water cannon, tear gas during COVID curbs protest
RE
03:06pBelgian police fire water cannon, tear gas during COVID curbs protest
RE
02:35pCrews make progress against California wildfire that triggered evacuations
RE
02:16pECB's Rehn expects euro zone inflation of around 2% in next two years -Handelsblatt
RE
02:04pERNST ON CNN'S STATE OF THE UNION : “We Need to Show Strength” Against Russia, Impose Sanctions Immediately to Deter Invasion of Ukraine
PU
02:03pFOURTH COVID VACCINE SHOT RAISES RESISTANCE TO SERIOUS ILLNESS FOR OVER-60S : Israel
RE
01:59pUK warns Russia will face severe sanctions if it puts 'puppet regime' in Ukraine
RE
01:50pUK warns Russia will face severe sanctions if it puts 'puppet regime' in Ukraine
RE
01:46pIslamic State claims responsibility for attack in Herat, Afghanistan
RE
Latest news "Economy & Forex"