Rain

Rain

max temp: 13°C

min temp: 4°C

ESTD 1874 Search

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.

shares

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.

shares

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

Ipswich Crown Court

A 19-year old man who met up with a 13-year-old girl and exchanged text messages with her despite being given a police caution for kissing her several months earlier has been sentenced to 21 months youth detention.

The vandals tore through Bury St Edmunds

A drunken “night of madness” saw vandals rack up over £5,000 of damage to cars, pubs and property as they roamed the streets of Bury St Edmunds.

St Edmundsbury Cathedral overlooking colourful displays in the Abbey Gardens

Suffolk’s most important religious building has been awarded a £300,000 Government grant to pay for urgent roof repairs.

Josephine Murphy

An 86-year-old woman who had gone missing from Clacton has been found safe and well

Aftermath of a barn fire in Holton.

A television antiques expert has appealed for help rebuilding his eco-friendly arts centre in Suffolk after a major blaze destroyed the historic sawmill that was to be its showroom and workshops.

Tim Yeo

An outgoing Suffolk MP has denied reports he stands to make more than £500,000 from the sale of his second home, which was part-subsidised by the taxpayer – saying he plans to keep the London property.

Stansted Airport

Aircraft pilots were targeted with lasers around Stansted Airport 45 times last year.

Darsham Nurseries head chef Lola DeMille and chef Tom Eagle in the cafe where they are donating money from one of the dishes to the World Land Trust.

An international conservation charity based in Suffolk is one of three organisations to benefit from a new campaign raising awareness about the impact of meat production on health, welfare and the environment.

Suffolk County Council's base at Endeavour House

Up to 23 jobs could go in a major shake-up of Suffolk County Council’s education services.

Latitude Festival, at the Henham Estate near Southwold

Suffolk poet Luke Wright has seen the Latitude festival grow from a modest boutique gathering in 2006 to one of Britain’s biggest music and arts events.

Most read

Most commented

Topic pages