Britain’s competition watchdog has decided to plough ahead with an investigation into JD Sports’ £90m takeover of Footasylum.
The Competition and Markets Authority (CMA) has referred the deal to an in-depth probe amid concerns that it could potentially result in higher prices and less competition.
Fashion giant JD Sports said this morning that it has informed the CMA it does not think there are any remedies that it could currently offer to avoid the next stage of the investigation, known as ‘Phase 2’.
“The CMA has referred their review of this acquisition to Phase 2 on the basis that it could be bad for competition and may have an impact on price. I strongly disagree with this,” said JD Sports executive chairman Peter Cowgill.
He added: “This transaction will not result in any price increases or a reduction in product ranges or service quality. The focus of all of our group businesses is to ensure we deliver a best in class, multichannel experience to our consumers by offering a compelling product proposition.”
The UK trainer and sportswear group revealed in March this year that it plans to combine the two businesses, which already have close links among management.