Sonae merges SportZone with English companies
The merger will result in a company which will be the runner-up in the Iberian market for the retail sales of sports goods.
Sonae will move forward with a merger of the businesses between SportZone and two retail stores from the same sector performing in the Iberian Market and which belong to a British group — JD Sprinter and JD Sports Group. In a press release sent this Thursday to the Portuguese Securities Market Commission (CMVM), SportZone clarifies they signed a Memorandum of Understanding which predicts the merger and the creation of an Iberian group, which will be the second largest in the sector.
The British companies JD Sprinter and JD Group will hold shares in the new group along with Sonae, having 20%, 50% and 30% equity, respectively. The Iberian group will become the second largest retail seller of sport goods, with a combined turnover which surpasses 450 million euros. The merger between both companies results in the creation of a network of 287 stores, 191 in Spain and 96 in Portugal.
“The combined Group is expected to increasingly achieve economies of scale, reaching attractive profitability levels”, Sonae’s Board of Directors stated in the press release. The new group “will benefit from all shareholder’s geographic and sector know-how”, is also stated in the report.
