Sports Direct International Plc Media Statement re CMA Phase 2 Investigation
30 Ottobre 2019 - 08:00AM
RNS Non-Regulatory
TIDMSPD
Sports Direct International Plc
30 October 2019
Date: 30 October 2019
SPORTS DIRECT INTERNATIONAL PLC
("Sports Direct" or the "Company")
Media Statement
Sports Direct has reviewed the CMA's decision, published on 24
October 2019, to refer the completed acquisition by JD Sports
Fashion plc of Footasylum plc to a Phase II investigation (the
"Decision").
The CMA had found that the acquisition was likely to result in
"a worse deal for customers, both in-store and online, through
higher prices, worse choice in stores or reductions in service
quality" as, inter alia, "the merging businesses are 2 of a smaller
number of firms who have the brand relationships and market
presence to be able to credibly meet the demands of sports fashion
customers".
Sports Direct notes that in the Decision the CMA has
acknowledged that Sports Direct has a "differentiated product
offering" from JD Sports and Footasylum (the "Parties") and has
experienced a "lack of access to SMUs/exclusive and/or
high-end/premium products".
However, despite these findings, Sports Direct further notes
that the CMA has nevertheless published inaccurate estimates of
Sports Direct's share of the supply of "sports-inspired casual
apparel and also footwear", both on an in-store and online basis,
which wrongly suggest that Sports Direct would have a comparable
share of supply to the merged Parties.
Sports Direct disagrees with these estimates as they
substantially overstate its presence on each of the markets which
are the subject of the CMA's investigation. Sports Direct does not
have a meaningful, if any, presence in these markets for the
reasons articulated by the CMA in the Decision.
Sports Direct welcomes the opportunity for these percentages to
be corrected during the course of the CMA's Phase II
investigation.
Mike Ashley CEO of Sport Direct has commented: "I have been
watching this from the side lines to date and now having had the
opportunity of considering the CMA decision, I would now welcome
the opportunity to provide the CMA with the correct market data.
For example, our market share of Adidas Originals in Sports Direct
is virtually zero."
Ends
Sports Direct International T. 0344 245 9200
plc E. investor.relations@sportsdirect.com
Tom Piper, Company Secretary
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NRAFEMFLUFUSELS
(END) Dow Jones Newswires
October 30, 2019 03:00 ET (07:00 GMT)
Grafico Azioni Frasers (LSE:FRAS)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Frasers (LSE:FRAS)
Storico
Da Mar 2023 a Mar 2024