OFT to investigate HMV acquisition of Zavvi
Office of Fair Trading to assess whether competition is reduced on High Street
The Office of Fair Trading is to investigate HMVs recent acquisition of stores previously owned by retailer Zavvi.
Last month the entertainment retailer said that it would be spending around GBP 2 million to refit and rebrand the locations of its collapsed rival.
"The Office of Fair Trading is considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002," said the OFT.
"Should it be found to be a relevant merger situation, the OFT will further consider whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services that warrants reference to the Competition Commission for investigation and report."
HMV bought the stores in order move into locations currently under-represented by the business.
Despite earlier reports, GamesIndustry.biz understands that HMV does not intend to buy any more than the previously announced 14 stores.