CMA looks into JD Sports’ Footasylum merger
Written by Hannah McGrath
The Competition and Markets Authority (CMA) has launched an investigation into JD Sports’ £90 million acquisition of Footasylum.
The competition watchdog said it would look into whether the acquisition, which was completed in March, had “resulted or may be expected to result in a substantial lessening of competition within any market”.
The CMA served initial enforcement action against any attempts to merge the businesses in May and is now inviting any interested parties to comment on the transaction to assist its probe.
Under the terms of the investigation, both companies are banned from taking any actions to integrate the two businesses until the CMA has reached a decision.
JD Sports had bought 19 per cent of Footasylum shares in February before moving to take the company over.
The deadline for a decision on the initial phase of the inquiry has been set for 19 September, while comments from interested parties should be submitted no later than 2 August.