Peter Cowgill, the executive chairman at JD Sports Fashion has described the competition watchdog’s decision to prohibit his company’s acquisition of rival retailer Footasylum as ‘absurd’ and stated the following:
“This decision comes at a very difficult time for retailers and we have been careful to consider the effects of coronavirus. However, we need to make sure we think about the impact of this merger on shoppers, both now and in the foreseeable future and we do not see the effects of the current crisis changing the competitive dynamics in a way that diminishes the substantial lessening of competition which we need to remedy. We never take decisions to block mergers lightly, but in this case the evidence has shown it is necessary for JD Sports to sell Footasylum, so that they can continue to compete against each other as independent businesses.”
Cowgill said the group “fundamentally disagrees” with the CMA’s decision. He described the conclusion as “absurd” given the UK high street is in lockdown amid the coronavirus pandemic. The group is now considering whether to formally challenge today’s decision in the Competition Appeal Tribunal.
