Home / Knowledge / News / Fashion / OFT considers Sports Direct offer for JJB acquisition
OFT considers Sports Direct offer for JJB acquisition
12
May '09
The OFT is considering an offer by Sports Direct International Plc to divest stores in five local areas following its acquisition of 31 stores from JJB Sports Plc.

Sports Direct and JJB are the two largest specialist retailers of sportsrelated clothing, footwear and equipment in the UK. Sports Direct purchased the stores from JJB in a series of separate transactions over a two year period, but under merger legislation, the OFT was able to review these acquisitions as one individual transaction.

The OFT investigation, which was carried out under its own initiative, found that the acquisitions raised competition concerns in five local areas where Sports Direct already had existing stores.

Sports Direct has offered to divest outlets in these areas to up-front buyers approved by the OFT.

Amelia Fletcher, OFT Senior Director of Mergers said: 'The OFT used its discretion in this case to roll a number of separate acquisitions of JJB stores by Sports Direct over the last two years into a single investigation, given that the overall impact on consumers had the potential to be significant.

Although our investigation indicated that the purchase of these stores had not reduced competition at a national level, we identified concerns in five local areas that needed to be addressed.' If the divestments are not accepted, then a referral to the Competition Commission will be necessary.

NOTES
1. For reasons of confidentiality, the OFT will not currently disclose which stores Sports Direct has proposed to divest. Details on how the OFT identified the local areas to be divested will follow in the full text of the decision and in public consultation on the undertakings in lieu.

2. Own-initiative merger inquiries– while the majority of mergers reviewed by the OFT arise from voluntary notification by the parties, the OFT's own-initiative inquiry programme has led to remedial action by the OFT or CC in a number of cases under the Enterprise Act 2002 regime. In some of these cases, it is always possible that the parties would have voluntarily notified the OFT of their merger at a later date. The OFT has a dedicated Mergers Intelligence Officer responsible for monitoring non-notified merger activity and liaising with other competition authorities.

3. Thereference test - the OFT has a duty to make a reference to the Competition Commission if it believes that it is or may be the case that a relevant merger situation has been created, and the creation of that situation has resulted or may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

4. Under the Enterprise Act, a relevant merger situation is created if two or more enterprises have ceased to be distinct, and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million' or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search