The UK Office of Fair Trading (OFT) is looking into whether 'a relevant merger situation' has been created as a result of Sports Direct's minority interest in retailer Blacks Leisure Group.

If evidence of this is found then the OFT will investigate whether it might lessen high street competition.

Sporting goods chain Sports Direct bought a 28.5% share in Blacks in February, but saw its GBP26.4m (US$40m) bid for the outdoor retailer rejected by board members a month later.

A note released by the OFT on Monday (17 May) said: "Should it be found to be a relevant merger situation the OFT will further consider whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services that warrants reference to the Competition Commission for investigation."