JD Sports on CMA decision: Footasylum merger would not “result in price increases”
Sportswear retailer JD Sports Fashion plc has reacted to the decision by the Competition and Markets Authority (CMA) to further investigate its proposed merger with Footasylum.
The CMA has confirmed this morning that it will be referring the merger between JD Sports and the footwear specialist to a Phase 2 investigation.
This news comes after the CMA found that the proposed merger, which follows JD Sports’ acquisition of 70 Footasylum stores across the UK, is “expected to result in a substantial lessening of competition” in its Phase 1 investigations on September 19.
JD Sports informed the CMA that it did not consider that there were any remedies that could be offered to avoid further investigations being made, but maintained that the merger would not be detrimental to market competition.
Peter Cowgill, executive chairman of JD Sports Fashion plc, commented: “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. 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.”
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