Competition Commission
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SPORTS DIRECT/JJB SPORTS - ISSUES STATEMENT
The Competition
Commission (CC) has today published an issues statement as part of
its inquiry into Sports Direct International plc’s acquisition of
31 stores from JJB Sports plc
The CC has been asked by the Office of Fair Trading (OFT) to
decide whether the acquisition may be expected to result in a
substantial lessening of competition (SLC) within any market or
markets in the UK.
Sports Direct and JJB are the two largest specialist
retailers of sports-related clothing, footwear and equipment in
the UK. The OFT’s investigation earlier this year found that the
acquisitions raised competition concerns in five local areas where
Sports Direct already had stores. Sports Direct offered to divest
stores in these areas to upfront buyers approved by the OFT, in
lieu of a reference to the CC, but has been unable to do so in the
required timescale.
The issues statement follows the first stages of gathering
information, views and evidence and identifies for all interested
parties the specific questions and areas the inquiry is examining.
These issues will form the basis for hearings with Sports Direct
and other parties.
The issues statement is available on the CC website at:
www.competition-commission.org.uk.
If the inquiry group (the Group) considers that the merger
may be expected to result in an SLC, it will consider whether and,
if so, what remedies might be appropriate, taking into account any
customer benefits that might arise from the merger, and will issue
a remedies statement, should this be required, at about the time
it publishes its provisional findings.
The issues statement should not be seen as implying that the
Group has identified any com-petition concerns—the Group has yet
to reach any conclusions on this inquiry. The purpose of making
the issues statement public is to inform all interested parties
and give them an opportunity to raise any further points with the CC.
The CC is expected to report by 21 January 2010 and would
like to hear comments on the issues statement from any interested
parties, in writing, by 22 September 2009. To submit evidence,
please email david.duparc@cc.gsi.gov.uk
or write to:
David du Parc Braham
Inquiry Manager
Competition Commission
Victoria House
Southampton
Row
LONDON
WC1B 4AD
Notes to Editors
1. The CC is an independent public body, which carries out
investigations into mergers, markets and the regulated industries.
2. The Enterprise Act 2002 empowers the OFT to refer to the
CC completed or proposed mergers for investigation and report
which create or enhance a 25 per cent share of supply in the UK
(or a substantial part thereof) or where the UK turnover
associated with the enterprise being acquired is over £70 million.
3. The members of the Sports Direct/JJB Inquiry Group are:
Diana Guy (Group Chairman), Phil Evans, Roger Finbow and John
Smith.
4. The CC has a 24-week period in which it is required to
publish its report, which may be extended by no more than eight
weeks if it considers that there are special reasons why the
report cannot be published within that period.
5. Further information on this inquiry, including the terms
of reference and other key documents, as well as on the CC and its
procedures, including its policy on the provision of information
and the disclosure of evidence, can be obtained from the CC
website at: www.competition-commission.org.uk.
6. Enquiries should be directed to Rory Taylor on 020 7271
0242 (email rory.taylor@
cc.gsi.gov.uk).
Contacts:
Rory Taylor
Phone: 0207 271 0242
Rory.Taylor@cc.gsi.gov.uk
