JD Sports Fashion PLC (LSE:JD.) said it will sell Footasylum Limited and its associated subsidiaries to German asset management firm Aurelius Group for £37.5mln.
The sale is expected to close within the next few weeks without any conditions.
Britain's largest sportswear retailer said the sale is in accordance with the final undertakings issued by the Competition and Markets Authority (CMA) after it prohibited JD's acquisition of Footasylum last year.
"JD has cooperated 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 company said in a statement.
Footasylum was purchased by JD Sports for £90mln in 2019, but the purchase was reversed on competition grounds.
The CMA argued the takeover could decrease competition and result in poorer deals for Footasylum customers.
Peter Cowgill, former JD Sports chair, called the decision "inexplicable" at the time, though in the aftermath of Cowgill’s departure from JD Sports, the narrative moved to governance and internal controls.
In February, the firm was handed a £4.3mln fine for breaching the rules.
"I would like to sincerely thank the teams at Aurelius and Footasylum who worked collaboratively with the CMA to agree (to) this transaction. We wish both parties every success for the future," said Kath Smith, JD Sports interim chief executive.
Shares of the company were 0.50% higher at 130.20p in London.