Topps Tiles’ CTD acquisition has triggered CMA concerns in four areas

This has raised concerns about potential competition issues in four regions following Topps Tiles’ acquisition of 30 CTD Tiles locations last year. 

The watchdog warned that both business and retail customers in these areas might face deteriorating service levels and less favorable pricing due to reduced market competition.

The four regions that the CMA identified as possible concerns are Aberdeen, Dorking, Inverness and Edinburgh. 

The acquisition, valued at approximately £9m, took place in August following CTD Tiles’ entry into administration. Topps Tiles, whose chief executive Rob Parker recently stepped down, purchased CTD’s retail network along with its brand portfolio – including CTD Tiles, CTD Trade, and CTD Architectural Tiles – as well as selected inventory and intellectual property rights.

The deal excluded 56 CTD Tiles outlets, which administrators Interpath confirmed would be sold off through the administration process.

The retailer noted in a statement to markets: “The company is pleased to note that following the announcement of its Phase I decision today, the CMA found that the transaction has generated no competition concerns in the majority of areas reviewed.

Specifically, the CMA agreed with the company that its acquisition of the CTD commercial tile operations (CTD Architectural and CTD Housebuilder) did not raise any competition concerns and that in 26 out of 30 locations where retail stores were acquired, no local competition concerns were identified.

“In the four retail localities where the CMA has identified possible concerns (Dorking, Aberdeen, Inverness and Edinburgh), the company now has the opportunity to put forward remedies to address these concerns in lieu of a more in-depth investigation.

“The company will continue to work with the CMA in a constructive and professional manner – as it has done throughout this process.”