The UK’s Competition and Markets Authority (CMA) has found that Topps Tiles’ recent acquisition of CTD Tiles could raise competition concerns in four specific areas, warning the merger could lead to “worse deals and service” in those locations.
Following review of the 30 CTD locations Topps acquired, the CMA found that 26 of the locations posed no concerns of raising local competition concerns. However, after its phase one investigation, the CMA said that merger “may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom”.
In the four areas with possible concerns – Dorking, Aberdeen, Inverness and Edinburgh – Topps now has the opportunity to put forward remedies to address the concerns.
The CMA has said that if sufficient remedies are not put forward to address the concerns, it will progress the matter to a more in-depth phase two investigation. Topps Tiles now has until February 24 to offer solutions to the CMA’s competition concerns.
Topps Tiles is considered to be the biggest tiling retailer in the UK, and in August 2024, it acquired CTD Tiles – the UK’s second-biggest tiling retailer – out of administration.
“Having looked at the evidence, we’re concerned Topps Tiles’ purchase of CTD Tiles may reduce competition in Dorking, Edinburgh, Inverness and Aberdeen,” commented Joel Bamford, executive director for mergers at the CMA
“This loss of competition could lead to worse deals and service in those areas. 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.”
Going forward, Topps has also committed to continue working with the CMA “in a constructive and professional manner”, as it says it has done throughout the process so far.
