JD Sports’ proposed takeover of Footasylum is to be the subject of further investigation by the Competition and Markets Authority.
On the 19th of September, the CMA announced concerns that the merger could leave customers worse off through higher prices, less choice in stores or reductions in service quality. It has also asked JD Sports to address these concerns.
JD Sports responded in a statement, saying that it has informed the CMA that it does not consider that there is any appropriate remedies that can be offered to avoid a stage two investigation and that the CMA has confirmed that the transaction will be referred for further checks.
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 deal would see JD acquire 70 UK Footasylum stores in the UK, adding to its brand portfolio of Size?, Scotts, Tessuti and Footpatrol.
