// JD Sports said customers will “benefit” as a result of its £90m proposed takeover of Footasylum
// The takeover is currently under investigation by the CMA
JD Sports has told the competition regulator that consumers will “benefit” as a result of its proposed takeover of Footasylum.
The £90 million deal has been heavily criticised by rival retailers and is currently under investigation by the CMA.
In October, the watchdog said it would launch an in-depth phase two probe into the deal after the CMA warned it could lead to “higher prices, less choice and a worse shopping experience for customers”.
READ MORE: JD Sports shares plunge as Pentland offloads £177m worth of holdings
During the same month, Sports Direct owner Mike Ashley accused the CMA of incorrectly saying Sports Direct “would have a comparable market share of supply to the merged parties” and called for a probe into the dominance of Adidas and Nike.
In new submissions published by the CMA, JD Sports has said the takeover would be beneficial for customers.
“The merger generates a number of efficiencies including the preservation of Footasylum’s existing brand supply that will, as a result, benefit consumers,” JD Sports said in its statement to the CMA.
“The merger has not and cannot be expected to result in a significant lessening of competition given that the merged entity operates in dynamic, trend-driven and fiercely competitive markets in which the ‘must stock’ global brands set the competitive framework.”
The sports goods retailer said Footaslyum is a “small rival in a weak condition”. It also suggested that the sector is facing increased competition from online rivals.
The competition watchdog will reveal the conclusion of its probe by March 16 next year.
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