Iberia expansion for JD Sports out of the starting blocks

Bury-based JD Sports Fashion has completed the deal which will combine its existing business in Spain and Portugal with one of the largest sports retailers in the region.

The company said it had received unconditional clearance from the European Commission for the merger of its existing interests across Iberia with those of Sport Zone.

Executive chairman Peter Cowgill said: “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.

“We therefore do not anticipate that the acquisition will be immediately earnings enhancing.

“However, we remain firm in our belief that, utilising the skills of the very experienced and knowledgeable management team at Sport Zone and our own expertise, there are significant opportunities to improve operational efficiencies and profitability over the longer term across the enlarged Iberian business.”