European Commission clears Jimmy Choo purchase

The European Commission said on Tuesday that it has unconditionally cleared the planned takeover of UK luxury footwear brand Jimmy Choo.

Jimmy Choo

The company is being bought in an almost £900 million deal by Michael Kors as the American company seeks acquisitions that have major growth potential after the Kate Spade New York auction to Coach.

The purchase is being effected by a court-approved scheme of arrangement under Part 26 of the UK’s Companies Act 2006 with Kors acquiring the firm through a wholly-owned subsidiary.

That scheme remains subject to court approval later this month with Jimmy Choo shares expected to de-list by October 30.

Jimmy Choo has been powering ahead in recent periods with the company saying just over month ago that its latest half-year results saw it growing sales and margins ahead of the market. It also boosted accessories as a percentage of its overall sales as it continued to diversify beyond its core footwear offer with bags and Safilo-made sunglasses proving popular. And its men’s business continued to be its fastest-growing unit.

The company saw growth in almost all regions in the latest half, which is bound to be a plus for its soon-to-be new owner.

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