The competition watchdog is to appeal a tribunal’s decision to overturn its move to block the acquisition of retailer Footasylum by JD Sports.
The Competition Appeal Tribunal (CAT) last month quashed the CMA decision, which it said didn’t fully understand the impact of the coronavirus pandemic.
In a statement today, the Competition and Markets Authority’s (CMA) said it believes CAT “misapplied the law in reaching this decision”.
The Bury-headquartered company announced it was to acquire Rochdale-based Footasylum in a £90m deal in 2019, but the Competition and Markets Authority (CMA) ruled against it in May after an investigation found it would “result in a substantial lessening of competition in sports-inspired casual footwear and apparel”.
The CMA said it “determined that at the time of the final stages of its investigation – shortly after the UK had entered lockdown – the uncertainty facing retailers and suppliers meant they were not in a position to provide robust evidence on the medium to long term impact of coronavirus from which reliable conclusions could be drawn”.
The CAT will decide whether it will grant the CMA permission to appeal, the CMA said.
