The Competition Markets Authority has signalled it may take a closer look at the acquisition of Go Outdoors Topco by JD Sports Fashion PLC (LON:JD.).
The competition watchdog said it would look into the takeover to determine whether it would result in a substantial lessening of competition in the retail market for what JD Sports called “the outdoor enthusiast”.
JD announced the £112.5mln acquisition of Go Outdoors at the end of November.
The chain has 58 outlets, most of which are situated on out-of-town retail parks, and in the 53 weeks to 31 January 2016 made a profit before tax of £4.9mln on revenues of £202mln.
Pending the outcome of the investigation by the Competition Markets Authority (CMA), JD effectively has to put the integration of Go Outdoors into the group on hold.
Shares in JD Sports were off 0.8% at 320.45p in early deals.