The UK’s competition authority has launched a merger inquiry into JD Sports’ acquisition of fellow retailer Footasylum, months after the deal completed, reported the Financial Times.
JD agreed to buy the remaining shares in Footasylum that it did not already own in March of this year, in a cash deal that valued the shoe and clothing chain at £90.1 million (US$112.6 million). Shareholders approved the deal the following month.
The Competition and Markets Authority announced an initial investigation in May, which banned the two groups from integrating their businesses, and on Wednesday said it would launch a full merger inquiry.
JD bought an 8% initial stake in February, but stated it was not intending to make an offer to buy its smaller rival. It raised its stake to 18.7% before the deal to buy all the outstanding shares in March.
Full Content: Financial Times
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