# JD Sports Fashion Plc Update on CMA review of Footasylum acquisition

- Link: https://www.directorstalkinterviews.com/jd-sports-fashion-plc-update-on-cma-review-of-footasylum-acquisition/412794277
- Published: 2019-10-01T07:29:51+01:00
- Author: Giles Arbor

**[JD Sports Fashion Plc](https://www.directorstalkinterviews.com/ftse-company/jd-sports-fashion/jd.l)**(
LON: JD.) has today provided a further update following the Competition and Markets
Authority’s (CMA) review into JD’s acquisition of Footasylum.

Following the CMA’s Phase 1 decision of 19 September 2019, JD has carefully considered
the CMA’s observations and its claims that the acquisition of Footasylum would give
rise to a realistic prospect of a substantial lessening of competition.

JD firmly believes that there is clear evidence that the acquisition would not result
in a substantial lessening of competition in the relevant clothing and footwear 
retail markets where the two businesses operate.

In light of the content of the CMA’s full Phase 1 decision, JD has informed the 
CMA that it does not consider that there are any appropriate remedies that can be
offered at this time to avoid a reference to Phase 2 being made. The CMA has therefore
confirmed today that the transaction will be referred to a Phase 2 investigation.

JD has, and will, continue to co-operate fully with the CMA in its review to firmly
establish that both JD and Footasylum operate in an extremely competitive and dynamic
retail market and that they will continue to face strong competition following the
acquisition.

JD’s commercial success rests on its global in-store and online offerings being 
compelling to both consumers and its brand partners. The acquisition of 70 Footasylum
stores in the UK does not affect this commercial reality and does not adversely 
impact the competitive landscape. Consumers and brand owners can and do exercise
choice across a wide range of large and sophisticated multi-channel and online retailers,
both in the UK and internationally, with the major brands increasingly selling their
products direct to consumers through their own sales channels.

The challenging UK retail market provides many examples of retailers who have either
suffered or been unable to survive because they have not met the rapidly evolving
requirements of consumers and brand owners. Indeed, JD’s rationale for carrying 
out this acquisition was to retain Footasylum’s position as a multichannel retailer,
both on the UK high street and online, while ensuring that Footasylum’s diverse 
and complementary offer remains available to its consumers.

**Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, commented:**

> “The CMA has referred their review of this acquisition to Phase 2 on the basis
> that it could be bad for competition and may have an impact on price. I strongly
> disagree with this. This transaction will not result in any price increases or
> a reduction in product ranges or service quality. The focus of all of our Group
> businesses is to ensure we deliver a best in class, multichannel experience to
> our consumers by offering a compelling product proposition.”

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