The Competition and Markets Authority (CMA) has referred the proposed acquisition for a phase two investigation, after revealing it was “concerned” that the deal could lead to a loss of competition.

The CMA said the purchase “could result in a worse deal for customers, both in-store and online, through higher prices, worse choice in stores or reductions in service quality”.

The watchdog said JD Sports “must now address the concerns identified or face a further, more in-depth, investigation”.