JD Sports sells Footasylum for £37.5 million
Last year, the Competition and Markets Authority ordered JD in November to sell the business it bought in a £90 million deal in 2019 over competition concerns. The nature of the order from the CMA meant that JD Sports' would inevitably reduce the price it hoped to obtain for the chain.
JD Sports said it had "co-operated with the CMA throughout the divestment process, including ensuring that the purchaser was acceptable to the CMA and met certain key criteria set out within the final undertakings."
The sale is anticipated to complete in the coming weeks with no conditionality.
In February 2022, JD Sports and Footasylum were fined a combined £4.7 million over breaching rules stopping the firms working too closely amid their proposed merger last year.
The UK competition regulator said that the two sportswear retailers exchanged “commercially sensitive information” and failed to report this to the watchdog. It added that these actions “had the potential to affect competition in the market and lead to anti-competitive behaviour”.
Kath Smith, Interim CEO of JD Sports Fashion, said: "I would like to sincerely thank the teams at Aurelius and Footasylum who worked collaboratively with the CMA to agree this transaction. We wish both parties every success for the future."