17th Feb 2025 09:54
(Alliance News) - Topps Tiles PLC on Monday said it will continue to work with UK competition authorities as it seeks to address concerns over its planned acquisition of CTD Tiles Ltd.
The Leicestershire, England tile retailer was commenting after the Competition & Markets Authority found that the GBP9 million purchase of 30 CTD Tiles stores, announced last August, raises competition concerns in four areas of the UK.
Back in October, the CMA, the UK's competition regulator, had said it was reviewing the deal after receiving several complaints, including concerns relating to how the deal impacted businesses and retail customers in specific areas of the country.
Following a phase 1 investigation, the CMA found that a small number of sites in Dorking, Edinburgh, Inverness and Aberdeen created competition concerns in the supply of tiles to customers.
Elsewhere, the CMA concluded that in "most" areas there are sufficient remaining competitors.
Joel Bamford, executive director for mergers at the CMA, 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."
Bamford said Topps Tiles now has the opportunity to "offer solutions to our concerns, otherwise this case will proceed to a more in-depth investigation."
For its part, Topps Tiles said it is "pleased" to note the CMA found that the transaction has generated no competition concerns in the majority of areas reviewed.
It pledged to put forward remedies to address concerns in the four areas highlighted.
"The company will continue to work with the CMA in a constructive and professional manner, as it has done throughout this process," Topps Tiles added.
Topps Tiles has until next Monday to submit proposals which resolve the CMA's concerns.
Shares in Topps Tiles were 4.9% higher at 36.72 pence each in London on Monday morning.
By Jeremy Cutler, Alliance News reporter
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