Topps Tiles’ £9m CTD Tiles takeover edges closer to CMA approval
Topps Tiles' £9m takeover of CTD Tiles has cleared a key hurdle after the CMA provisionally approved its proposed solutions to competition concerns.
Topps Tiles’ £9m takeover of CTD Tiles has cleared a key hurdle after the Competition and Markets Authority (CMA) provisionally approved its proposed solutions to competition concerns.
The watchdog had initially raised concerns that the deal, which saw Topps acquire 30 CTD Tiles stores earlier this year, could reduce competition in certain areas of England and Scotland.
To address this, Topps and CTD have proposed divesting stores in Dorking, Edinburgh, Inverness, and Aberdeen.
In an update to the London Stock Exchange, the retailer said it would continue to work with the CMA in a “constructive and professional manner” as the regulator finalises its decision.
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The CMA has until 1 May to determine whether the proposed remedies are sufficient to prevent a full Phase II investigation or if further action is required.
If fully approved, the acquisition would strengthen Topps Tiles’ market position as it continues its expansion strategy in the UK tile sector.
At the start of the year, Topps Tiles chief executive Rob Parker revealed he would be retiring from the business after 18 years followings its return to sales growth.
Parker’s departure comes as the tile specialist reported it had returned to growth during the golden quarter, with group sales up 4.6% in the 13 weeks to 28 December and 12.9% in the most recent five-week period.
It attributed the improvement to the “robust growth” in trade revenue at both Topps Tiles and Pro Tiler, which jumped 13.5% and 20% respectively.
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