By Hugh Radojev2019-10-01T06:44:00
The Competition and Markets Authority has today escalated its probe into JD Sports’ £90m swoop for Footasylum, after the footwear retailer decided there wasn’t any “appropriate remedies” to avoid the phase 2 probe.
The CMA announced on September 19 that it had referred the proposed acquisition for a phase 2 investigation, but has this morning confirmed this escalation will take place, after JD Sports said it would “not be offering any undertakings”.
In a statement, JD said it had ”informed the CMA that it does not consider that there are any appropriate remedies that can be offered at this time to avoid a reference to phase 2 being made,” and strongly disagreed with the CMA’s view that the acquisiton would decrease competition.
JD boss Peter Cowgill 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.
Please sign in now if you have a subscription
Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.
Register today for a taste of our high-quality intelligence and enjoy:
Discover Retail Week register now
Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.