CMA escalates investigation into JD Sports’ Footasylum acquisition
The Competition and Markets Authority has today escalated its probe into JD Sports’ £90m swoop for Footasylum, after the footwear retailer decided there wasn’t any “appropriate remedies” to avoid the phase 2 probe.
The CMA announced on September 19 that it had referred the proposed acquisition for a phase 2 investigation, but has this morning confirmed this escalation will take place, after JD Sports said it would “not be offering any undertakings”.
In a statement, JD said it had ”informed the CMA that it does not consider that there are any appropriate remedies that can be offered at this time to avoid a reference to phase 2 being made,” and strongly disagreed with the CMA’s view that the acquisiton would decrease competition.
JD boss Peter Cowgill said: ”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.
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