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The UK antitrust regulator announced on Thursday that JD Sports (NASDAQ: JD) must sell Footasylum after finding that the merging of the two sportswear shops could harm competition and leave consumers with fewer options.
JD was ordered to divest the firm it bought in 2019 by the Competition and Markets Authority (CMA) in May, but after the retailer appealed, the CMA began reassessing the agreement through an in-depth investigation.
“JD Sports is by far and away the closest alternative for shoppers at Footasylum,” the CMA said in a statement. JD Sports responded by saying the CMA’s finding “defies logic,” but that it was thoroughly reviewing the report and will carefully consider its options.
JD Sports, which offers Nike (NYSE: NKE), Adidas (OTC: ADDYY), and Puma in its physical and online stores, claims that the COVID-19 pandemic has just boosted competition as multinational companies develop their direct-to-consumer businesses.
Story by : Norvisi Mawunyegah