(Reuters) -The U.S. Federal Trade Commission (FTC) is investigating whether Roark Capital’s purchase of Subway for $10 billion is legal under antitrust law given that the private equity firm already owns Jimmy John’s and Arby’s, Politico reported Tuesday.
The probe highlights the fact that the Biden administration’s antitrust enforcers are focusing their efforts on basic consumer goods. Private equity acquisitions have been another focus.
The FTC is investigating whether buying Subway would give Roark too much power in fast food, the report said, citing sources familiar with the matter. Roark controls Inspire Brands, the owner of restaurant chains including Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings.
Politico reported that the companies are telling the FTC that it should not just focus on sandwiches but look at the large number of choices that people have when deciding to order fast food.
Subway and Roark did not immediately respond to Reuters’ request for a comment. The FTC declined comment.
Roark agreed to buy Subway in August, in a deal that Reuters reported valued the U.S. sandwich chain at up to $9.55 billion, including debt.
An indepth antitrust probe of a proposed deal can take a year or more.
