JD Sports’ proposed £90 million acquisition of Footasylum has been halted by an ongoing investigation by the Competition and Markets Authority (CMA).

It issued an interim order against JD Sports proceeding any further with the takeover, with the latest ruling explaining that no action should be taken which might prejudice or impede the taking of any further action.

The deal was made in March, with approval given by shareholders the following month, and the CMA beginning its investigation in May.

In October, the competition regulator warned that the deal could “result in a substantial lessening of competition in any market or markets in the UK for goods or services”.

Rival retailer Sports Direct criticised the CMA over “inaccurate estimates” in its investigation, with boss Mike Ashley’s Sports Direct stating that the takeover would be “likely to have wider market implications beyond this transaction, as they appear to highlight the power of the ‘must-have’ brands and potential market-wide practices aimed at controlling the supply and, ultimately, the pricing of their products”.

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