David Lloyd must resolve concerns in Brighton and Brentwood to avoid further investigation of its purchase of 16 Virgin Active gyms.
Following an initial investigation into the merger, the Competition and Markets Authority (CMA) has found that the 2 Virgin Active gyms in these areas compete closely with the nearby David Lloyd gyms, and would face limited competition from other operators after the merger.
The CMA is concerned that this loss of competition could result in higher prices or worse deals being offered to gym users in these areas.
It is therefore going to refer the merger for an in-depth phase 2 investigation by an independent group of CMA panel members unless David Lloyd is able to offer proposals that resolve the competition concerns by 26 May 2017.
In the other areas affected, the CMA has found no competition concerns from the merger.
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