JD Sports executive chairman Peter Cowgill said he “strongly disagrees” with the competition watchdog’s decision to continue its investigation into its acquisition of Footasylum.
The Bury-headquartered company has asserted its acquisition of Rochdale-based Footasylum , announced earlier this year, “will not result in any price increases or a reduction in product ranges or service quality”.
JD Sports said the Competition and Markets Authority (CMA) confirmed today the acquisition will be referred to ‘phase two’ after it informed the watchdog it doesn’t believe any “appropriate remedies” can be offered to avoid it.
Last month, the CMA said the merger could lead to “higher prices, less choice and a worse shopping experience for customers”.
It warned if it is unable to address the CMA’s concerns, the merger will be referred for an in-depth investigation.
Mr Cowgil said: “The CMA has referred their review of this acquisition to phase two on the basis that it could be bad for competition and may have an impact on price.
“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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JD Sports said it has considered the CMA’s decision last month to begin its second phase of scrutiny into the acquisition, but says there is “clear evidence the acquisition would not result in a substantial lessening of competition in the relevant clothing and footwear retail markets”.
It said: “JD’s commercial success rests on its global in-store and online offerings being compelling to both consumers and its brand partners.
“The acquisition of 70 Footasylum stores in the 海角视频 does not affect this commercial reality and does not adversely impact the competitive landscape.
“The challenging 海角视频 retail market provides many examples of retailers who have either suffered or been unable to survive because they have not met the rapidly evolving requirements of consumers and brand owners.
“Indeed, JD’s rationale for carrying out this acquisition was to retain Footasylum’s position as a multichannel retailer, both on the 海角视频 high street and online, while ensuring that Footasylum’s diverse and complementary offer remains available to its consumers.”
The group added: “JD has, and will, continue to co-operate fully with the CMA in its review to firmly establish that both JD and Footasylum operate in an extremely competitive and dynamic retail market and that they will continue to face strong competition following the acquisition.”