JD Sports has announced plans to “combine” its Spanish and Portuguese divisions with Sports Zone business Sonae, one of the largest sports retailers in the region.
The companies have agreed a “memorandum of understanding” outlining plans for JD’s Spanish and Portuguese divisions, JD Sprinter Holdings, would partner with Sonae to create a new entity, Iberian Sports Retail Group.
The JD Sports, Sonae and the family shareholders of JD Sprinter, will have shareholdings of around 50%, 30% and 20%, respectively.
The partnership would create the second-largest sports retailer in the region, with 287 stores and an estimated combined turnover of €450m (£390m).
JD Sports said the tie-up will generate further scale, momentum and resources to continue the current growth of the group.