Tribunal overturns CMA’s decision to block JD Sports’ takeover of Footasylum
The Competition and Market Authorities’ decision to block JD Sports’ acquisition of the Footasylum retail brand has been quashed by a tribunal.
The Competition Appeal Tribunal said the CMA “acted irrationally” and without the necessary eveidence when making its decision
As a result, JD Sports has now said the case will be put forward to the CMA for full reconsideration and the CMA’s previous order, which would have forced the group to divest the Footasylum business, will be cancelled.
Peter Cowgill, executive chairman of JD Sports Fashion, said: “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.
“The entire case will now go back to the CMA for reconsideration 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.”
The CMA has said it is considering an appeal.
