Topps Tiles’ CTD acquisition could trigger worse deals across four regions, CMA warns
Topps Tiles' takeover of 30 CTD Tiles stores could result in competition issues across four areas of the country, the Competition and Markets Authority (CMA) has warned.
Topps Tiles’ takeover of 30 CTD Tiles stores could result in competition issues across four areas of the country, the Competition and Markets Authority (CMA) has warned.
The government department highlighted that companies and customers in the four areas could receive worse service or deals because of the reduction in competition.
It comes after the UK’s largest tile specialist, which recently saw its CEO retire, acquired all of CTD Tiles sites for roughly £9m in August, after the brand collapsed into administration.
The retailer acquired the supplier’s brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, 30 of its retail stores, selected stock and all related intellectual property.
However, the deal did not include 56 CTD Tiles stores, which administrators at Interpath said would be disposed of through the administration process.
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Following the acquisition, the CMA said it received several complaints, which included worries over “how the deal impacted businesses and retail customers in specific areas of the country”.
The CMA identified specific competition concerns across Edinburgh, Dorking, Inverness and Aberdeen.
Topps Tiles has until 24 February to submit proposals to diminish the CMA’s concerns and avoid a deeper investigation.
CMA executive director for mergers Joel Bamford said: “Having looked at the evidence, we’re concerned Topps Tiles’ purchase of CTD Tiles may reduce competition in Dorking, Edinburgh, Inverness and Aberdeen.
“This loss of competition could lead to worse deals and service in those areas.”
He continued: “Whether you’re retiling your own home or a business that provides renovation services, the merger could make such projects more expensive.
“Topps Tiles now has the opportunity to offer solutions to our concerns, otherwise this case will proceed to a more in-depth investigation.”
Topps Tiles said: “The company will continue to work with the CMA in a constructive and professional manner, as it has done throughout this process.
“A further announcement will be made in due course.”
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