Champion Sports paid in the region of £10 million to take over its rival Marathon's chain of shops, it has emerged. It is also understood that the combined sportswear retailing group will now target expanding in provincial towns and cities.

The £10 million figure is considerably lower than some reports initially indicated. Marathon's annual turnover is around £20 million, while Champion Sports is around £30 million. The sports retailing market in the Republic is said to be worth £500 million.

Sources close to the deal said the combined group, which will have 26 stores, may close just one store - a discount store. It is expected that there will also be some rationalisation of the two groups' warehouses. Both have warehouse operations in Tallaght, Dublin and these are expected to be combined.

However, sources stressed that the moves would not entail job losses. "There is an extreme shortage of staff in retailing at present," said one source.

The stores are held on a leasehold basis, but are high profile, with a presence in streets such as Grafton Street and Henry Street in Dublin. Both Marathon and Champion have stores in these streets.

Sources said these would not be rationalised, but the group's market presence in Dublin was fairly well complete. Expansion will most likely take place in provincial towns and in Northern Ireland, said the source.

Marathon Sports is owned by Mr Michael Curran and his wife Linda, who it is understood will be exiting the business. It has 11 stores, nine in Dublin and two in Limerick and Drogheda. It has been trading for 18 years.

Champion Sports is owned by Mr Paul McGlade (45 per cent shareholder) and property developer Mr Paddy McKillen (45 per cent). The company's financial controller, Mr Paul Cunningham, holds 10 per cent.

Champion concentrates mainly on Adidas goods, while Marathon deals more in Nike brand goods.