Frasers Group has reportedly tabled an offer for Footasylum after JD Sports was ordered by the UK’s Competition and Markets Authority (CMA) to sell the company earlier this year.
The CMA told JD Sports in November it would have to sell Footasylum’s 65 stores after ruling the merger between the two sportswear retailers would “leave shoppers worse off”.
A survey by the competitions watchdog found that half of online shoppers said they would go to JD Sports if they were unable to purchase their usual products at Footasylum.
Frasers Group eyes Footasylum acquisition
The investigation into the 90 million pound acquisition was first launched back in 2019. The CMA said the sale of Footasylum was “the only way to address its competition concerns and protect consumers”.
Frasers Group, which owns brands Sports Direct, Flannels, House of Fraser, and Jack Wills, has notified the CMA of its intention to make a bid, The Sunday Times reports.
Kip Meek, chair of the CMA inquiry group, previously told the BBC: “The UK boasts a thriving sports fashion market and today’s decision reflects our commitment to keeping it that way.
“We strongly believe shoppers could suffer if Footasylum stopped having to compete with JD Sports. It is likely they would pay more for less choice, worse service and lower quality.”