The European Commission approves JD Sports and Sports Zone merge

The European Commission has dismissed any previous competitions concerns and approved the merge of British JD Sports and Sports Zone, creating the second largest sports apparel retailer in Spain and Portugal.

The deal, announced in September, got the European Union’s legislative body’s approval on Thursday, as the European Commission understands that the deal closed in September "does not give rise to competition concerns."

JD.Sports and Sports Zone merge creates the second largest athletic apparel retailer in Iberia

The resulting company makes the second largest athletic apparel retail chain in the Iberian Peninsula, just second to Decathlon.

"The Commission concluded that the proposed acquisition does not give rise to competition concerns because local horizontal overlaps between business activities are moderate, market share increases are small, and the joint venture will face competition from the market leader and other operators with regional and national implementation, both in Spain and Portugal, "reads a note released by the European Commission's Directorate-General for Competition.

The European Commission’s green light comes ten months after Sonae announced that it had entered into conversations - a memorandum of understanding - with JD Sports Fashion Plc, Balaiko Firaja Invest SL and JD Sprinter Holdings 2010, SL (JD Sprinter) for the merger of Sport Zone with the business of the British group - those of JS Sports and JD Sprinter - in the Iberian Peninsula.

The definitive agreement was communicated to Spanish regulator, the CNMV, on 14 September, 2017. According to the communication, the total number of stores was up to 287 (circa 100 in Portugal) and the estimated turnover for 2016 to 450 million euros.

The day before the merge was vetted by the European Union, JD Sports, which currently owns 12 stores in Portugal, said on Wednesday that "its expansion plan will continue through 2018, as the company plans to open 15 new stores in the main shopping centres of the Iberian Peninsula."

Image:JD Sports, Men’s Clothing Collection