The
Competition and Markets Authority (CMA) has issued its report in its remitted second
phase investigation of the completed acquisition by JD Sports Fashion plc of
Footasylum plc.
The
CAT remitted the case back to the CMA for reconsideration after a challenge to
the CMA’s decision to block the merger. The
CAT held that the CMA should have requested further information about the
impact of the COVID-19 pandemic.
The
CMA has again concluded that the merger may be expected to result in a
substantial lessening of competition (SLC) in the retail supply of
sports-inspired casual footwear in the UK and in the retail supply of
sports-inspired casual apparel in the UK (in each case in both the instore and
online channels).
While
the outcome is the same as the CMA’s original finding, it differs in its
identification of the SLC. This reflects
its findings on market developments since May 2020, which have resulted in
Footasylum becoming a weaker constraint and other competitors becoming stronger
constraints on JD Sports. However, these
changes did not affect the adverse effects identified by the CMA.
The
CMA maintains its original view that requiring the full divestiture of
Footasylum by JD Sports is the only effective remedy to the SLCs.
https://www.gov.uk/government/news/cma-requires-jd-sports-to-sell-footasylum
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