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| JD Sports told to sell Footasylum by competition watchdog | JD Sports told to sell Footasylum by competition watchdog |
| (32 minutes later) | |
| The UK's competition watchdog has ordered JD Sports to sell Footasylum over concerns the takeover could lead to a "worse deal" for customers. | The UK's competition watchdog has ordered JD Sports to sell Footasylum over concerns the takeover could lead to a "worse deal" for customers. |
| The Competition and Markets Authority (CMA) found that JD Sports was the closest alternative for Footasylum shoppers. | The Competition and Markets Authority (CMA) found that JD Sports was the closest alternative for Footasylum shoppers. |
| In a statement, it said a sale was "the only way to address its competition concerns and protect consumers". | In a statement, it said a sale was "the only way to address its competition concerns and protect consumers". |
| But JD Sports criticised the move, calling the decision "inexplicable". | But JD Sports criticised the move, calling the decision "inexplicable". |
| It follows an in-depth investigation by the competition watchdog after it first blocked the £90m takeover last year. | |
| JD Sports appealed against a ruling by the CMA in September, saying it was "perplexed" by its decision not to include online sales by Nike and Adidas in the UK in its review. | |
| JD Sports boss rejects criticism of £4.3m bonus | |
| Brexit worse than feared, says JD Sports boss | |
| In an update on Thursday, the CMA found that the takeover of Footasylum would reduce competition even after taking into account the growth in online shopping. | |
| Half of online shoppers surveyed by the competition watchdog said that they would go to JD Sports if they were unable to purchase their usual trainers or joggers at Footasylum. | |
| Investigators also insisted that Footasylum would "remain in good financial health" even if it was not owned by JD Sports, Britain's biggest sportswear retailer, despite increased competition from other companies. | |
| Total revenues for Footasylum for the 2020 financial year were £232m, with underlying pre-tax profits of £29.3m, up from £3.8m from a year before. | |
| 'Shoppers could suffer' | |
| Kip Meek, chair of the CMA inquiry group, said: "The UK boasts a thriving sports fashion market and today's decision reflects our commitment to keeping it that way. | |
| "We strongly believe shoppers could suffer if Footasylum stopped having to compete with JD Sports. It is likely they would pay more for less choice, worse service and lower quality." | |
| It added that the rivals can continue to compete for shoppers online and as they return to the High Street. |