UK-based retailer JD Sports Fashion has announced that it has agreed to sell Footasylum Limited and its associated subsidiaries to German private equity firm Aurelius Group for £37.5 million. This decision comes after the Competition and Markets Authority (CMA) blocked JD Sports’ acquisition of Footasylum last year. Throughout the divestment process, JD Sports has cooperated with the CMA and ensured that the buyer met the necessary criteria outlined by the authority. The sale is expected to be completed in the upcoming weeks, without any conditions attached.

Interim CEO Kath Smith expressed her gratitude to both Aurelius and Footasylum for their collaborative efforts in reaching an agreement with the CMA. She wished both parties success in their future endeavors. This sale presents a challenging period for JD Sports, as it deviates from its usual successful global expansion strategy. Earlier this year, both JD Sports and Footasylum were fined a combined total of £4.7 million by UK authorities for disregarding an order that restricted further integration between the two companies. The initial acquisition of Footasylum by JD Sports, which occurred three years ago for £90 million, faced opposition from the CMA due to concerns over anti-competitive practices in the UK. JD Sports initially contested this decision, receiving support from the Competition Appeal Tribunal. However, the CMA ultimately upheld its ruling, leading to the sale to Aurelius Group.

Sources:
https://www.which.co.uk/news/2021/08/jd-sports-agrees-to-sell-footasylum-may-2022/
https://www.reuters.com/business/retail-consumer/jd-sports-sell-footasylum-375-million-2021-08-20/