The Competition and Markets Authority will investigate the recent £112.5 million acquisition of Go Outdoors by JD Sports.
Having yesterday issued an initial enforcement order, the CMA outlines that it has grounds to believe that the takeover would substantially affect competition in the sports retail market.
In the 53 weeks to January 31st, 2016, Go Outdoors made a profit before tax of £4.9 million on £202 million in revenue.
The firm has been expanding its offering in the cycle market this year, revamping at least 43 of its stores with a “multi-million pound investment” that includes hiring trained mechanics. House brand Calibre has also benefited from the experience of industry veteran Mike Sanderson, whose bikes have gone on to review well in the consumer press.
Factory Jackson carries a good interview with Sanderson here.
Until the competition watchdog reaches a conclusion JD will put the integration of Go Outdoors into its group on hold.