CMA: Concerns remain over JD Sports and Footasylum merger
The Competition and Markets Authority (CMA) has revealed its findings from further investigation of the proposed merger between JD Sports and Footasylum.
Following the initial blocking of the merger by the CMA in May 2020, JD Sports appealed the decision and requested a review via the Competition Appeal Tribunal (Tribunal).
After further investigation, the CMA has reached the provisional view that the merger could result in a worse deal for Footasylum shoppers throughout the UK, including higher prices, fewer discounts and less choice of products in store.
Kip Meek, chair of the group conducting the inquiry, commented: “Since our original inquiry, we have gathered a significant amount of additional evidence, including on the impact of coronavirus, and we still have concerns about JD Sports’ takeover of Footasylum.
“This deal would see Footasylum bought by its closest competitor and, as a result, shoppers could face higher prices, less choice and a worse shopping experience overall.
“While many stores were closed during lockdown, online sales in this market have been stronger than ever, and revenue from in-store sales is rebounding as people return to the high street.
“JD Sports, Footasylum and others in the sector now have the opportunity to give us their views – on both our provisional decision and our suggested remedy.”
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