JD Sports reacted angrily to the UK Competition and Markets Authority again blocking its proposed acquisition of rival sportswear chain Footasylum.
The FTSE100 group had appealed an earlier ruling by CMA that halted the takeover on competition concerns, but the watchdog reiterated concerns that shoppers could face higher prices or less choice.
Peter Cowgill, executive chairman of JD Sports Fashion PLC (LSE:JD.) said: "We have made compelling submissions on the committed positioning of the global brands towards Direct to Consumer and the consequent impact on an extremely competitive marketplace.
“I am perplexed and again disappointed that these have been rejected. “
He added that rather than lessening competition CMA clearance would enable JD to invest in Footasylum and 'work with its management team to increase the quality, range and choice of products available to its consumers'.
The competition watchdog first blocked the £90m takeover last year and said many of its concerns then still remained.
"This deal would see Footasylum bought by its closest competitor and, as a result, shoppers could face higher prices, less choice and a worse shopping experience overall," said Kip Meek, chair of the CMA inquiry.
"While many stores were closed during lockdown, online sales in this market have been stronger than ever, and revenue from in-store sales is rebounding as people return to the High Street."
These findings are provisional and JD said it would continue to make its case strongly to the CMA before it releases its Final Report due in October 2021.