Watchdog clears Sports Direct’s acquisition of JJB shops
SPORTS Direct’s acquisition of 31 stores from its Wigan-based rival JJB Sports has been provisionally cleared by the Competition Commission.
The deal was referred to the commission by the Office of Fair Trading (OFT) last year following competition concerns in five areas where Sports Direct already ran shops.
The commission has now ruled that the acquisition will not lead to a substantial lessening of competition or have any adverse effects for customers.
Chairman of the inquiry group and Competition Commission deputy chairman, Diana Guy said: “We have looked at whether consumers in the local areas concerned will be affected by these acquisitions and have provisionally concluded that they are unlikely to lose out. We do not believe there will be higher prices or a reduction in quality and choice for consumers.
“Sports Direct and JJB are undoubtedly each other’s closest competitors nationally and this has not changed as a result of the transfer of a relatively small number of stores. What we have found is that the prices and range on offer in any individual Sports Direct store are not significantly affected by whether there is a nearby JJB store or not but, rather, depend on the degree of overall competition between the two at the national level.”
Sports Direct, controlled by Newcastle United owner Mike Ashley, was hoping to avoid the referral by selling shops in the five areas but it could not find buyers within a three-month time frame set down by the OFT. The retailer bought the shops from JJB in a series of transactions over a two-year period.
The commission has extended to the publication date of its final report to April 21 and is seeking comments from the public on its provisional findings.
A separate investigation investigation launched in September by the OFT and the Serious Fraud Office is investigating allegations of price fixing at the companies. At the time JJB said it was assisting the investigation and had been granted immunity from prosecution.
