JD Sports to combine Iberian businesses with Sport Zone

JD Sports Fashion is to combine its businesses in Spain and Portugal, JD Sprinter Holding, with the Sport Zone business of Sonae, a Portugueses retailer.

The companies signed a memorandum of understanding to create Iberian Sports Retail Group, of which JD Group will have a 50% stake in, Sonae will have a 30% stake and the family shareholders of JD Sprinter will hold 20%.

JD sports said that the Iberian Group will become the second largest Iberian sports retailer with an estimated combined turnover over €450m and network of 287 stores

The FTSE 250 company also sees the new partnership with Sonae as an opportunity to generate further scale, momentum and resources to grow JD Group.