European Commission approves JD Sports Fashion Plc acquisition
JD Sports Fashion Plc has secured the go ahead to form a new €450m Iberian operation.
The company confirmed this morning (February 1) that the European Commission gave the greenlight for its acquisition of retailer Sport Zone.
The deal, announced last September and formally completed this week, will see JD combine its interests across Spain, Portugal and the Canary Islands with those of Sport Zone, part of European retail group Sonae.
Peter Cowgill , executive chairman at Bury-headquartered JD, said: “We are delighted that this transaction, which gives us a significantly enhanced presence across Iberia, has now formally completed.
“The financial benefit derived from Sport Zone will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies.”
He added: “We therefore do not anticipate that the acquisition will be immediately earnings enhancing.”
Speaking further, Mr Cowgill said combining “the skills of the very experienced and knowledgeable management team at Sport Zone” with the expertise of JD’s own senior team will open up “significant opportunities to improve operational efficiencies and profitability over the longer term across the enlarged Iberian business”.