Topps Tiles has been given a week to assuage competition concerns over its £9m acquisition of failed rival CTD Tiles.
The Competition and Markets Authority has told the chain that it has concerns over a loss of competition in four areas across the Uk and has given it until 24 February to provide it with information that would prevent a deeper investigation.
Topps paid £9m for the CTD Tiles, CTD Trade and CTD Architectural Tiles brands, intellectual property, certain stock and 30 retail stores in August.
The CMA says the deal could impact shoppers and contractors in the Edinburgh, Dorking, Inverness and Aberdeen areas.
‘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,’ says Joel Bamford, CMA executive director for mergers.
‘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.’
Topps says it is continuing to work with the competition watchdog.
