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Trade News Archive 2009 January February March April May June July August
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7th August 2009
JJB stores aquisition by Sports Direct referred
The acquisition by Sports Direct International of 31 JJB stores has been referred to the Competition Commission over concerns that it could harm trade in five areas.
Earlier this year, the Office of Fair Trading (OFT) found that the deal between Britain's two largest specialist sports clothing stores could adversely affect smaller retailers and consumers in five areas where Sports Direct already operated.
As a result, it gave the company - which is owned by Newcastle United owner Mike Ashley - three months to sell the five stores in question, something that it was unable to do.
The regulator added that it did not believe granting an extension to Sports Direct would bring about a positive outcome and subsequently decided to pass the matter on to the Competition Commission.
Amelia Fletcher, senior director of mergers at the OFT, said: "After careful consideration, we have rejected Sports Direct's request for additional time to try to achieve a sale.
"We are not persuaded that an extension would make a difference in this case, and in these circumstances, the proper course is for the OFT to refer the matter to the Competition Commission."
In June, the OFT reported that actions undertaken by Trading Standards have led to savings of at £228 million a year for consumers by tackling "unfair trading practices".
(c) 2009
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