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U.K. ÇMA Says JD Sports Fashion - Footasylum Merger Raises Competition Concerns

The UK's competition watchdog warned that JD Sports Fashion plc's (JD.L) 90 million pounds Footasylum deal may hurt competition, referring the deal for a deeper investigation.

The U.K. Competition and Markets Authority or CMA said it is concerned that the loss of competition brought about by the merger could result in a worse deal for customers, both in-store and online, through higher prices, worse choice in stores or reductions in service quality.

The CMA said that JD Sports must now address the concerns identified or face a further, more in-depth, investigation.

Meanwhile, Peter Cowgill, Executive Chairman of JD Sports Fashion said that the company's discussions with the CMA are ongoing as the company considers whether to proceed to Phase 2 or if acceptable remedies can be agreed at this stage.

Cowgill noted that the company looks forward to working constructively with the CMA in this regard and will provide further updates in due course.

JD Sports agreed to buy Footasylum in a 90 million pounds deal announced earlier this year.

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