The Office of Fair Trading is investigating Sports Direct’s stake in Blacks Leisure which it won ownership of in a High Court claim last week.

The OFT is considering whether a merger situation has been created as a result of Sports Direct owning the 29% stake. Sports Direct also owns outdoor retailer Field and Trek.

If the OFT finds a “relevant merger situation” it will consider whether a merger may lead to a “substantial lessening of competition” in the outdoor retail sector and if so will pass it on to the Competition Commission to investigate.

In March Sports Direct made a bid for Blacks but pulled out over concerns that major suppliers would not supply the business if the sports retailer’s bid was successful.