JD Sports Fashion reports that the Competition Appeal Tribunal of the U.K. has “quashed” a decision by the Competition and Markets Authority (CMA) to forbid its acquisition of Footasylum, a British chain of more lifestyle-oriented sports fashion shops. As a result, the CMA will have to reconsider the whole case, cancelling its order to divest the business. Expressing satisfaction at the appeal court’s verdict, Peter Cowgill, executive chairman of JD, repeated the argument that the merger would provide “significant long-term benefits to customers, colleagues and brand partners.” He said that JD will provide further evidence regarding the evolution of the competitive landscape, due in particular to the unprecedented challenges caused by the Covid-19 pandemic. In March last year, JD signaled its intent to buy all the shares in Footasylum, which was publicly quoted, and won the tender the next month. Last May, after a lengthy investigation, the British anti-trust authority blocked the takeover, arguing that the transaction would lead to a “substantial lessening of competition nationally.”
