**Fraser’s Group, the British retail conglomerate owned by Mike Ashley, has increased its stake in online fashion retailer Asos to almost 20%, making it the company’s largest shareholder.**
The group, which also owns Sports Direct, Flannels, and House of Fraser, bought a 5.9% stake in Asos in April 2022 and has been gradually increasing its holding since then. Its latest purchase of 5.1% takes its total stake to 19.9%, according to a regulatory filing on Friday.
The move comes as Asos is facing a number of challenges, including rising costs, supply chain disruption, and increased competition. The company has also been criticized for its handling of environmental and social issues.
Fraser’s Group has a reputation for being a tough negotiator and is known for its aggressive takeover tactics. It is unclear what the group’s intentions are for Asos, but it is likely to seek to exert more influence over the company’s strategy and operations.
Asos shares have fallen by more than 80% over the past year, as investors have become increasingly concerned about the company’s prospects. The stock closed at 568 pence on Friday, giving the company a market capitalization of £780 million.
Fraser’s Group is worth £3.3 billion and has a track record of acquiring struggling retailers. In 2018, it bought House of Fraser out of administration. It also owns a stake in Hugo Boss.
**Analysts say that Fraser’s Group is likely to be interested in Asos because it is a major player in the online fashion market. Asos has a strong customer base and a global reach. It is also one of the few online retailers that is profitable.**
However, Fraser’s Group is also known for its cost-cutting measures. It is possible that the group could try to reduce costs at Asos, which could lead to job losses and a decline in the quality of the company’s products and services.
**It is also possible that Fraser’s Group could try to merge Asos with one of its other retail businesses. This could lead to a more diversified group with a stronger market position.**
However, any such move would be likely to face regulatory scrutiny. The Competition and Markets Authority (CMA) has already launched an investigation into Fraser’s Group’s stake in Asos.
The CMA is concerned that Fraser’s Group could use its stake to influence Asos’s strategy and operations. The CMA is also concerned that Fraser’s Group could try to merge Asos with one of its other retail businesses, which could lead to a reduction in competition in the online fashion market.
**The CMA’s investigation is ongoing. It is unclear what the outcome of the investigation will be, but it is possible that the CMA could force Fraser’s Group to reduce its stake in Asos or to sell the company outright.**
**In the meantime, Asos is facing a number of challenges. The company is facing rising costs, supply chain disruption, and increased competition. It is also under pressure from investors to improve its environmental and social performance.**
**It is unclear what the future holds for Asos. The company is facing a number of challenges, but it also has a strong customer base and a global reach. It remains to be seen whether Fraser’s Group will be able to help Asos overcome its challenges and return to growth.**.
