JD Sports’ Footasylum deal referred for further investigation
JD Sports’ proposed takeover of Footasylum is to be the subject of further investigation by the Competition and Markets Authority.
On 19 September, the CMA said it was concerned that the merger could result in a worse deal for customers through higher prices, less choice in stores or reductions in service quality. It also asked JD Sports to address its concerns.
In a statement today, JD Sports said it has informed the CMA that it does not consider that there are any appropriate remedies that can be offered to avoid a phase two investigation and that the CMA has confirmed that the transaction will be referred for further scrutiny.
JD Sports said it believes the acquisition will not result in reduced competition in the clothing and footwear markets where the two businesses operate.
Peter Cowgill, executive chairman of JD Sports Fashion, said: “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.
“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 merger would include JD Sports acquiring 70 Footasylum stores in the UK.
JD Sports also owns the Size?, Scotts, Tessuti and Footpatrol brands.
