U.K. Competition Enforcer Mulls Store Sales in Topps Tiles-CTD Merger Review

The U.K.'s Competition and Markets Authority (CMA) has raised concerns over Topps Tiles' acquisition of 30 CTD Tiles stores, potentially leading to store sales in affected areas. The CMA's investigation found that the deal could result in reduced competition and higher prices for customers in Dorking, Edinburgh, Inverness, and Aberdeen. Topps Tiles has until February 24 to offer solutions to address these concerns.



Topps Tiles, the largest specialist tile retailer in the U.K., bought the CTD Tiles brand and 30 stores last year for £9 million after the company went into administration. The CMA initially served an initial enforcement order (IEO) on Topps Group in relation to the CTD acquisition, requiring the company to refrain from integrating the CTD Business into the group and carry on the CTD Business separately until the CMA review process has concluded.



The CMA's investigation found that the acquisition could lead to a substantial lessening of competition in the affected areas, with Topps Tiles now having a dominant position in those markets. To address these concerns, Topps Tiles could consider offering to sell off stores in the affected areas, maintaining separate brands and operations, or committing to price freezes or discounts in those regions.



The CMA's executive director for mergers, Joel Bamford, warned that the merger could make projects more expensive for homeowners and businesses, stating that "Whether you're retiling your own home or a business that provides renovation services, the merger could make such projects more expensive." Topps Tiles has until February 24 to offer solutions to the CMA's concerns, or the case will proceed to a more in-depth investigation.

In conclusion, the CMA's investigation into Topps Tiles' acquisition of CTD Tiles has raised concerns over reduced competition and higher prices for customers in specific areas. Topps Tiles has until February 24 to offer solutions to address these concerns, with potential remedies including store sales, maintaining separate brands, or committing to price freezes or discounts. The CMA's investigation highlights the importance of competition in the retail sector and the need for regulators to scrutinize mergers and acquisitions that could lead to reduced competition and higher prices for consumers.