CC CLEARS SPORTS DIRECT STORE ACQUISITIONS

News Release

14/10 16 March 2010

CC CLEARS SPORTS DIRECT STORE ACQUISITIONS

The Competition Commission (CC) has formally cleared the acquisition by Sports Direct International plc (Sports Direct) of 31 stores from JJB Sports plc (JJB).

In its final report published today at www.competition-commission.org.uk, the CC has ruled that it does not expect the acquisitions to lead to a substantial lessening of competition (SLC) nor any adverse effects for customers. This ruling confirms the inquiry's provisional findings, which were published last month.

Chairman of the Inquiry Group and CC Deputy Chairman, Diana Guy commented:

We do not believe there will be higher prices or a reduction in quality and choice for consumers as a result of these store acquisitions. Sports Direct and JJB are undoubtedly each other's closest competitors nationally and this has not changed as a result of the transfer of a relatively small number of stores. What we have found is that the prices and range on offer in any individual Sports Direct store are not significantly affected by whether there is a nearby JJB store or not but, rather, depend on the degree of overall competition between the two retailers at the national level.

Notes for editors

1. The Office of Fair Trading (OFT) referred the case to the CC for investigation on 7 August 2009, having undertaken an initial study which found that the store transfers could raise competition concerns.

2. The timescale for the CC's investigation was extended in its early stages because Sports Direct was unable to respond to the CC's information requests. Later in the inquiry, the timetable was extended further, resulting in a deadline for the publication of the CC's final report of 21 April 2010.

3. The members of the Sports Direct/JJB Inquiry Group were: Diana Guy (Group Chairman), Phil Evans, Roger Finbow and John Smith.

4. The CC is an independent public body, which carries out investigations into mergers, markets and the regulated industries.

5. The Enterprise Act 2002 empowers the OFT to refer to the CC completed or proposed mergers for investigation and report which create or enhance a 25 per cent share of supply in the UK (or a substantial part thereof) or where the UK turnover associated with the enterprise being acquired is over £70 million.

6. Further information on this inquiry, including the terms of reference and other key documents, as well as on the CC and its procedures, including its policy on the provision of information and the disclosure of evidence, can be obtained from the CC website at: www.competition-commission.org.uk.

7. Enquiries should be directed to Rory Taylor or John Park or by ringing 020 7271 0242.