CMA nears approval for Topps Tiles’ acquisition of CTD Tiles
Following an investigation amid competition concerns, the CMA said both groups had offered to divest tile stores in Aberdeen, Inverness, Edinburgh and Dorking
The Competition and Markets Authority (CMA) has confirmed it is nearing a green light for Topps Tiles’ £9m acquisition of CTD Tiles.
Following an investigation amid competition concerns, the CMA said both groups had offered to divest tile stores in Aberdeen, Inverness, Edinburgh and Dorking.
In light of this it now believes there are “reasonable grounds for believing that the undertakings offered by the parties or a modified version of them, might be accepted by the CMA”.
Last month, the CMA warned the merger may result in a “substantial lessening” of market competition, referring it for an “in-depth” investigation unless the groups “offer an acceptable undertaking” to address the concerns.
In December, the CMA issued an “invitation to comment” and said it was considering whether the merger proposal created a “relevant merger situation” under the Enterprise Act 2002.
Last August, Topps Tiles acquired the brand and assets of CTD Tiles in a £9m deal after the company fell into administration. The deal included the CTD Tiles brands, 30 stores, selected stock and its intellectual property from CTD Tiles Limited.
CTD supplied tiles to the retail, trade and commercial markets through a collection of brands including CTD Tiles, CTD Trade and CTD Architectural Tiles, and had annual revenues of around £75m.
The business also operated 86 stores across the UK. The 30 stores being acquired by Topps Group had total sales of around £20m in the year to June 2024.
Topps Group said the acquisition would provide the “opportunity to make a meaningful entry into the housebuilder segment and expand its existing share of the A&D segment”.
