Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 9°C

ESTD 1874 Search

The pigs are coming. Find out more about

Pigs Gone Wild

here.

Essex: The Gym Group and Pure Gym abandon merger plan after referral for competition probe

16:14 16 July 2014

A generic photo of people working out in a gym.

A generic photo of people working out in a gym.

Archant

Two gym operators have abandoned a £300million merger after their proposed tie-up was stalled by an in-depth competition probe.

Pure Gym and The Gym Group wanted to create a new low-cost player with more than 100 sites but have ditched the move because the investigation by the Competition and Markets Authority will last until next year.

The pair said in a joint statement that the referral of the deal for a full inquiry was unjustified, adding that the delay would be detrimental to their businesses.

Pure Gym, which launched in 2009, operates 68 24-hour gyms across the UK, with members paying monthly with no contract commitment. A majority stake in the business was acquired last year by funds affiliated with CCMP Capital Advisors.

The Gym Group, founded in 2007, runs 42 sites across Britain, including sites in Colcheter, Chelmsford and Norwich, and also operates a low-cost business model with contract-free membership. Phoenix Equity Partners bought a majority stake the business last year.

The two private equity firms said in a statement: “There are more than 6,000 gyms operating in the UK offering a variety of services, at a range of prices, to more than 7million members.

“We are surprised that the CMA has concluded that a combination of two young businesses with a combined total of 110 gyms nationwide created a risk of a substantial lessening of competition.”

Since the merger was first announced in February, the two businesses have continued to operated separately.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

EDF Chief Executive Vincent de Rivaz appears before the Energy and Climate Change Committee to answer questions over the delay in making a final investment decision on the Hinkley Point nuclear power project. Picture: PA Wire

A committee of MPs has been told that the sister station for a proposed third nuclear power plant on the Suffolk coast will go ahead despite a fresh delay in making a final investment decision.

Steam Punk Pig - Birketts entry for Pigs Gone Wild

Staff at Ipswich-based law firm Birketts are welcoming a new member to the team ahead of the Pigs Gone Wild art trail - Steam Punk Pig.

An artist's impression of what St James’ Business and Logistics Park will look like.

More than 600 jobs could be created if a major £72m business park planned for the outskirts of Ipswich gets the go-ahead.

File photo dated 06/10/11 of a trainee bricklayer. Chancellor of the Exchequer George Osborne delivers his Autumn Statement and Spending Review in the House of Commons today. PRESS ASSOCIATION Photo. Issue date: Wednesday November 25, 2015. See PA BUDGET stories. Photo credit should read: Ian Nicholson/PA Wire

Bricklayers are being paid up to £25 an hour as building firms struggle to recruit skilled workers, a new report has revealed.

Bids for Tata Steels UK business are being finalised.

Bids for Tata Steel’s UK business are being finalised ahead of a crucial week for the crisis-hit industry and the job prospects of thousands of workers.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24