CMA holds firm on JD Sports-Footasylum acquisition despite coronavirus crisis

Footasylum 1

The Competition and Markets Authority (CMA) is set to maintain its stance on JD Sports’ acquisition of Footasylum despite the damaging impact coronavirus has had on the latter’s finances. 

Retail Week understands the watchdog has shown no intention of reversing its provisional findings into the deal, despite representatives of JD Sports and Footasylum making what amounts to a ‘failing firm’ claim due to lost revenues as a result of the coronavirus lockdown.

The CMA effectively blocked the £90m acquisition in February, saying that it could force JD Sports to sell the Footasylum business amid competition concerns.

However, the CMA last week reneged on its reservations into Amazon’s purchase of a minority stake in Deliveroo, amid fears that the online food delivery platform would go bust without the cash injection. 

It sparked hope that the CMA could relax its hardline stance on other retail M&A activity. Earlier today, the watchdog updated its merger assessments criteria and its position on deals involving “failing firms” during the coronavirus pandemic.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.