Sports Direct has lashed out at the CMA for publishing “inaccurate estimates” of its access to product as part of the watchdog’s phase two investigation into the JD Sports-Footasylum merger.
In a statement published on the London Stock Exchange this morning, Sports Direct said it disagreed with the Competition and Markets Authority’s “estimates” it published last week as part of its investigation into the merger of JD Sports and Footasylum.
“The CMA has published inaccurate estimates of Sports Direct’s share of the supply of ‘sports-inspired casual apparel and also footwear’, both on an in-store and online basis, which wrongly suggest that Sports Direct would have a comparable share of supply to the merged parties.”
The statement goes on to say that Sports Direct “disagrees with these estimates” because they “substantially overstate its presence on each of the markets which are the subject” of the CMA investigation, and that it “does not have a meaningful, if any, presence in these markets”.
Sports Direct said it “welcomes the opportunity” for the CMA to correct “these percentages” during its investigation into the JD Sports and Footasylum merger.
Chief executive Mike Ashley said: “I have been watching this from the sidelines to date and now having had the opportunity of considering the CMA decision, I would now welcome the opportunity to provide the CMA with the correct market data. For example, our market share of Adidas Originals in Sports Direct is virtually zero.”
Ashley and Sports Direct have regularly commented on the CMA’s investigation since it began.
In late September, Sports Direct said it had received legal advice which highlighted the “power of the ‘must-have brands’” such as Adidas and Nike in restricting supply and increasing prices.
JD Sports agreed a £90m deal to acquire Footasylum in March this year.
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