// JD Sports insists £90m takeover of Footasylum won’t affect competition
// The CMA has decided to go ahead with a full-scale investigation into the takeover
JD Sports has insisted that its £90 million takeover of Footasylum will not be bad for shoppers as it faces a full-scale probe by the UK’s peak competition watchdog.
Following the CMA’s Phase 1 decision on September 19, the watchdog has decided to go ahead with an investigation into the takeover.
The probe is a result of growing concerns that the takeover could potentially result in higher prices and less competition.
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JD Sports said this morning that it has informed the CMA it does not think there are any remedies that it could currently offer to avoid the next stage of the investigation, known as Phase 2.
“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,” JD Sports executive chairman Peter Cowgill said.
“I strongly disagree with this.
“This transaction will not result in any price increases or a reduction in product ranges or service quality.
“The focus of all of our group businesses is to ensure we deliver a best in class, multichannel experience to our consumers by offering a compelling product proposition.”
JD Sports has reported a successful year so far as it debuted in the FTSE 100 back in June following a strong sales growth.
Footasylum, which first opened in 2006, has 70 stores in the UK and generated revenues close to £200 million in 2018.