Sports prices probe axed

Shares in Sports Direct and its smaller rival JJB Sports surged today after the Office of Fair Trading indicated it is dropping a probe into alleged anti-competitive practices in the sports retail sector.

The probe began in September 2009 when JJB told the OFT it suspected there was concerted action to dampen competition in the market. The Serious Fraud Office was involved, but had already said it will bring no action against the companies, although some unnamed individuals remained under scrutiny.

Freddie George at Seymour Pierce raised his rating on Sports Direct, which includes Lillywhites in Piccadilly Circus, from hold to buy. He said: "We assume the OFT have not found any evidence of wrongdoing." Sports Direct chairman Keith Hellawell said of the announcement: "It is in line with Sports Direct's long-held views on the investigation."

Sports Direct shares gained 11.9p to 217.8p. JJB Sports added more than 11 per cent, 2.15p at 21.4p.

Sports Direct is majority owned by Mike Ashley, the retail tycoon turned football club boss.