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JD and JJB confirm takeover talks
Sports retailers confirm talks for takeover of JJB by JD Sports
JD Sports and JJB have confirmed they are in the very early stages of discussions regarding a potential takeover of JJB by JD.
Press speculation arose yesterday (February 1) that the two were in talks about a takeover, and both have now confirmed the rumours.
A JJB statement read: “Further to the press speculation this evening, JJB Sports confirms that it is in initial discussions with JD Sport in relation to a potential offer.
“The highly preliminary nature of these discussions is such that there can be no certainty that any offer will be made or as to the terms of any offer.”
A JD Sports statement added: “There can be no certainty that an offer will be made by JD Sports for JJB Sports, nor as to the terms on which any offer might be made. A further announcement will be made in due course.
“This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of The City Code on Takeovers and Mergers (the "Code").”
JD Sports recently agreed to the takeover of struggling Irish sports retail chain Champion Sports in a move to grow its Irish base, while JJB has been hit with a £455,000 fine from the Financial Services Authority for failing to disclose the true cost of two takeovers more than three years ago.
A takeover of JJB by JD Sports is speculated to create a high street retail giant, with upwards of 700 stores. It is unclear as to whether the JJB name would continue to exist on the high street in the event of a takeover, or whether a parent holding company would be created, such as in the high-profile case of mobile telephone network operators Orange and T-Mobile, who formed the Everything Everywhere joint venture last summer with both brands still present in the retail environment.
