US FTC probes $10 billion deal for Subway – Politico

(Reuters) – The U.S. Federal Trade Commission (FTC) is investigating if the $10 billion purchase of Subway would create a sandwich shop monopoly with Jimmy John’s and Arby’s, both owned by Roark Capital, Politico reported on Tuesday.

The government is focused in part on whether the addition of Subway gives Roark too much control of a lucrative segment of the fast food industry, the report said, citing sources familiar with the matter.

Subway and Roark did not immediately respond to Reuters’ request for a comment.

Private equity firm 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.

Roark controls Inspire Brands, the owner of restaurant chains including Jimmy John’s, Arby’s, Baskin-Robbins and Buffalo Wild Wings.

(This story has been corrected to say that the deal was announced in August, not September, in paragraph 4)

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