The U.S. Federal Trade Commission is investigating if the $10 billion acquisition of the Shelton-based Subway sandwich shop chain runs afoul of antitrust laws.
According to a Politico report sourced from unnamed sources, the FTC is focused on whether Roark Capital, the private equity firm that announced its plans to acquire Subway in August, will be establishing a fast-food monopoly – the firm also owns the Jimmy John’s and Arby’s chains.
Roark did not announce its purchase price for Subway, but Politico cited an unidentified person “with knowledge of the deal” who put the cost at $10 billion. The Atlanta-based Roark is focused on chains that favor franchise models, and its portfolio also includes Dunkin’, Buffalo Wild Wings and Baskin-Robbins.
The FTC’s investigation reportedly began earlier this month and most merger and acquisition deals valued at over $111.4 million must are required to submit for a 30-day review period by either the FTC or U.S. Department of Justice.
