The Competitions and Markets Authority (CMA) has launched an investigation into JD Sports over its £90m acquisition of Footasylum.
The watchdog is has served initial enforcement orders to both JD Sports and Footasylum’s parent company Pentland, which is also the majority shareholder of JD Sports.
The CMA said it is investigating whether the deal could result in “a substantial lessening of competition in any market”.
JD Sports purchased fellow sport fashion retailer Footasylum in March off the back of two profit warnings from the firm, which made its stock market debut in November 2017.
At the time of the acquisition, JD Sports excecutive chair Peter Cowgill said Footasylum was a “very complementary to our existing businesses in the UK”.
“We believe that there will be significant operational and strategic benefits through the combination of the very experienced and knowledgeable management team at Footasylum and our own expertise,” he added.