REG - Competition and Mkts - Merger Update: Topps Tiles / CTD

Topps TilesAnnouncement

17/02/2025 08:15

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RNS Number : 3304X  Competition and Markets Authority  17 February 2025

 

Tile deal could lead to worse deals and service for home renovators and
tradespeople in 4 local areas

 

The CMA has found that Topps Tiles' acquisition of CTD Tiles could reduce
competitive deals and product choice for customers and businesses in parts of
England and Scotland.

 

The Competition and Markets Authority (CMA) has found that Topps Tiles' £9
million purchase of 30 CTD Tiles stores raises competition concerns in 4 areas
of the United Kingdom.

Topps Tiles is the biggest specialist tile retailer in the UK. Before entering
administration in August 2024, CTD was the second largest specialist tile
retailer in the UK. As part of the deal Topps Tiles acquired 30 stores, as
well as supporting infrastructure such as stock and all related intellectual
property for CTD Tiles, CTD Architectural, and CTD Housebuilders.

Following completion of the deal the CMA received several complaints, which
included concerns relating to how the deal impacted businesses and retail
customers in specific areas of the country. Following a Phase 1 investigation,
the CMA found that a small number of sites in Dorking, Edinburgh, Inverness
and Aberdeen created competition concerns in the supply of tiles to retail
customers and business customers.

The investigation found both companies compete closely for retail and business
customers. After reviewing the deal, including internal documents and evidence
from customers and competitors, the CMA concluded that in most areas there are
sufficient remaining competitors but that in a small number of areas, the deal
could lead to worse deals and service for customers.

Joel Bamford, Executive Director for Mergers at the CMA, said:

"Having looked at the evidence, we're concerned Topps Tiles' purchase of CTD
Tiles may reduce competition in Dorking, Edinburgh, Inverness and Aberdeen.

"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."

More information can be found on the Topps Tiles / CTD Tiles case page.
(https://www.gov.uk/cma-cases/topps-tiles-slash-ctd-tiles-certain-assets-merger-inquiry)

-ENDS-

Notes to editors:

1.   Topps Tiles has until Monday 24 February to submit proposals which
resolve the CMA's concerns.

2.   Topps Tiles Plc (Topps) is a UK-wide tile retailer for both businesses
and consumers based in Enderby, Leicestershire. It is the largest tile
specialist in the UK with over 300 stores (and serves customers through direct
sales teams and websites). The business is listed on the London Stock
Exchange.

3.   Topps acquired certain assets of Tildist Realisations Limited (formerly
CTD Tiles Limited), including 30 of its stores, intellectual property such as
branding and customer lists, and business divisions that supply tiles to
architectural and housebuilder customers as part of a pre-pack administration
deal.

4.   For media enquiries, contact the CMA press office on 020 3738 6460
or press@cma.gov.uk (mailto:press@cma.gov.uk) .

 

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