// Frasers Group calls for CMA to appoint trustee to sell Footasylum to an industry bidder
// The CMA previously said the takeover of Footasylum by JD Sports was likely to lead to less competition
Mike Ashley’s Frasers Group has reportedly proposed for the UK competition regulator to appoint a trustee to sell Footasylum to an industry bidder, such as itself rather than JD Sports.
Earlier this month, the CMA said the already-completed takeover of Footasylum by JD Sports was likely to lead to less competition.
Frasers Group said the CMA should appoint a “divestiture trustee” to run a Footasylum disposal process because JD Sports would not have enough reason to complete a sale quickly.
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In documents published in response to the CMA’s preliminary report, “company A” said any Footasylum buyer should be independent of JD Sports, Financial Times reported.
Meanwhile, two of the people briefed on the process said “company A” was Frasers Group.
Ashley said the JD Sports and Footasylum tie-up would lead to less competition and less choice for consumers because of JD Sports’ influence with sportswear giants such as Nike and Adidas.
He added that the key factor in deciding the acquirer’s capability to operate Footasylum is by making sure Footasylum continues to have adequate access to supplies of Nike and Adidas.
JD Sports, which saw its shares rise by 3200 per cent from 25 per cent since 2010 and enter the FTSE 100 last year, said Footasylum would have gone into administration without its intervention.