The Competition and Markets Authority (CMA) has ruled that Topps Tiles’ £9m purchase of 30 CTD Tiles stores would raise competition concerns in four areas of the UK.

Topps Tiles, the largest specialist tile retailer in the UK, announced in August last year it was to acquire the stores from its rival following CTD’s administration.

CTD, which was the second largest specialist tile retailer in the UK, agreed a deal with Topps Tiles which saw the latter acquire 30 stores, as well as support infrastructure such as stock and all related intellectual property for CTD Tiles, CTD Architectural, and CTD Housebuilders.

Following completion of the deal, however, the CMA received several complaints which included concerns relating to how the deal impacted businesses and retail customers in specific areas of the country.

A phase one investigation by the competitions watchdog found that sites in Dorking, Edinburgh, Inverness and Aberdeen created competition concerns in the supply of tiles to retail customers and business customers, as 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”.

Executive director for mergers at the CMA, Joel Bamford, 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.”

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