Buying spree gets formal clearance (From The Northern Echo)

Buying spree gets formal clearance

12:28pm Wednesday 17th March 2010 in

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A TWO-YEAR buying spree of JJB stores by rival Sports Direct International was given formal clearance by the competition watchdog yesterday.

The Competition Commission was asked to investigate the 31 purchases by Newcastle United owner Mike Ashley’s company after the Office of Fair Trading raised concerns about five areas where it believed competition had been reduced.

However, the commission said it was unlikely that there would be higher prices or a reduction in quality and choice for consumers.

Inquiry chairman Diana Guy said: ‘‘Sports Direct and JJB are each other’s closest competitors nationally and this has not changed as a result of the transfer of a relatively small number of stores.

‘‘We found the prices and range in any Sports Direct store are not significantly affected by whether there is a nearby JJB, but depend on the degree of overall competition between the two retailers at the national level.’’ Sports Direct and JJB are the two largest specialist retailers of sports-related clothing, footwear and equipment in the UK. Sports Direct, which has more than 350 outlets, acquired the stores after financially-troubled JJB moved to reduce its portfolio through a disposal and closure programme.