The government’s Competition and Markets Authority (CMA) is continuing its inquiry into the acquisition of CTD Tiles by Topps Tiles, and is now welcoming comments into whether the deal could result in wider competition concerns.
The CMA has issued this preliminary ‘invitation to comment’, and is inviting any interested parties to submit their initial views on the impact that the transaction could have on the UK market.
The CMA has emphasised that it has not yet launched its formal investigation into the transaction, and this new development marks just the first part of its information-gathering process.
Comments must be submitted in writing to the CMA, and are being welcomed until December 18. Following this, it will formally launch its official merger inquiry, and it has already advised Topps Tiles to appoint a monitoring trustee ahead of the process.
Back in August, Topps Tiles acquired the CTD Tiles brands and certain assets for £9 million after the company fell into administration. The arrangement included ownership of CTD Tiles, CTD Trade and CTD Architectural Tiles, as well as selected stock and intellectual property.
However, in October, the CMA announced it had opened an inquiry into the deal, meaning Topps Tiles had to delay any further integration of the CTD business into its own, and as a result, the CTD brand will have to carry on independently until the inquiry has closed.
Shortly after the inquiry was announced, Topps Tiles said it intended to work closely with the CMA to facilitate the inquiry process.
In more recent weeks, the managing director of Topps Tiles’ biggest shareholder spoke out against the CTD Tiles deal in the British press, saying the acquisition was “irrational” and “detrimental” to the business. He also called for an overhaul of the company’s senior management and strategy.
Following the comments, Topps issued a public rebuttal, defending the acquisition as “strategically compelling”, owing to CTD Tiles being a “trade focused brand”.
