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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

JD backs down from Footasylum takeover

It has faced several obstacles since it announced the purchase over two years ago

JD Sports Fashion PLC (LSE:JD.) looks set to admit defeat in its battle with the Competition and Markets Authority (CMA) over its takeover of Footasylum.

The sportswear retailer had been instructed to sell the smaller company last month, which it had initially purchased for £90mln in March 2019.

The CMA reached its decision citing fears the acquisition could heavily reduce competition, resulting in a worse deal for Footasylum customers.

According to The Sunday Times, the deadline to appeal the decision in the Competition Appeal Tribunal has already passed, which would suggest that JD has given up the fight for the trainer and designer clothing store.

JD boss Peter Cowgill had faced intense scrutiny earlier this year after he was pictured having a ‘secret’ meeting with Footasylum chief Barry Bown.

While meetings between each party are not illegal or against CMA regulations, the watchdog did state that “no business secrets, know-how, commercially sensitive information, intellectual property or any other information of a confidential or proprietary nature” can be shared.

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