13th Nov 2020 16:29
(Alliance News) - JD Sports Fashion PLC on Friday said a tribunal has quashed a UK watchdog's verdict which prohibited the retailer from sealing its takeover of Footasylum.
The decision by the Competition Appeal Tribunal means the Competition & Markets Authority will reconsider the case.
"We have always maintained that this merger would provide significant long-term benefits to customers, colleagues and brand partners, and so we are very pleased with the Competition Appeal Tribunal's judgment today," JD Sports Executive Chair Peter Cowgill said.
"The entire case will now go back to the CMA for re-consideration and we look forward to presenting further evidence which demonstrates the true extent to which the competitive landscape has evolved, in particular as a result of the unprecedented challenges caused by the Covid-19 pandemic."
Back in May, JD Sports hit out at the monopoly regulator after the CMA flexed its muscles and blocked the retailer's GBP90 million acquisition of high street outfit Footasylum.
The CMA had ordered JD Sports to sell Footasylum, but said it would allow it "sufficient time" due to the market turmoil caused by the Covid-19 pandemic.
The CMA said the tie-up would have left customers with "fewer discounts or receiving lower quality customer service".
In August, the CMA slapped JD Sports and shareholder Pentland Group PLC with a GBP300,000 fine for breaching an order related to the Footasylum deal.
The monopoly regulator said JD Sports and Pentland failed to comply with its enforcement order when Footasylum closed a store in Wolverhampton, England. The order banned the companies from making making any changes to Footasylum's store portfolio without prior permission of the CMA.
JD Sports shares were 0.6% higher at 816.60 pence each shortly before the closing bell in London.
By Eric Cunha; [email protected]
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