Overview

• Sen. Elizabeth Warren sent a letter Tuesday to the Federal Trade Commission and Justice Department urging them to block the $2.4 billion acquisition of Foot Locker by Dick’s Sporting Goods on antitrust grounds.
• Warren warned the merger could reduce competition in the retail athletic footwear market, enable the combined company to raise consumer prices and prompt store closures and job losses.
• She noted that the deal would give the merged entity over 15 percent of the U.S. sporting goods market and, with JD Sports, control roughly 5,000 athletic shoe stores nationwide.
• The senator highlighted that the new company’s increased bargaining power with manufacturers could disadvantage independent retailers by securing more favorable supplier terms.
• The FTC and DOJ have yet to issue a decision as they review Warren’s objections and the merger’s potential impact on competition and consumers.