CMA blocks JD Sports-Footasylum merger despite coronavirus uncertainty

JD Sports fascia

Following a phase two investigation, the CMA found the merger would “lead to a substantial lessening of competition nationally” in the footwear sector and would leave customers with “fewer discounts or receiving lower quality customer service”.

Following a phase two investigation, the CMA found the merger would “lead to a substantial lessening of competition nationally” in the footwear sector and would leave customers with “fewer discounts or receiving lower quality customer service”.

While the watchdog noted that the coronavirus has led to retailers “facing uncertain and challenging trading conditions” it found no evidence the impact of the virus removed its competition concerns.

The CMA did say it would give JD Sports time to sell Footasylum “given the additional challenges associated with coronavirus”.

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