JD Sports Fashion PLC’s (LON:JD.) completed acquisition of trainer retail chain Footasylum has been referred to a deeper competition investigation.
The Competition & Markets Authority said on Tuesday that it will now begin a ‘phase 2’ probe into the deal, which could result in JD being forced to sell off stores or even block the deal.
Last month the CMA said it thought the deal may result in a “substantial lessening of competition” and offered JD the chance to offer “undertakings” that might lessen the impact of the deal to avoid a phase 2 investigation.
JD said it “does not consider that there are any appropriate remedies that can be offered at this time”, however, so the deeper review will go ahead.
It has been suggested that a phase 2 probe could examine the power of the 'must-have' brands and potential market-wide practices aimed at controlling the supply and pricing.