JD Sports’ Footasylum Acquisition Draws Scrutiny
The U.K.’s Competition and Markets Authority, which must approve mergers there, much as the Federal Trade Commission does in the U.S., is questioning whether JD’s acquisition of the 70 store chain will result in higher prices for consumers. Both JD and Footasylum serve the same market, and the CMA said the deal could result in higher prices, worse choice in stores or reductions in service quality in the U.K.’s £5 billion sports clothing and footwear market. JD Sports now has to address the CMA’s concerns, or the merger will be referred for an in-depth (Phase 2) investigation by the agency.
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