UK Regulator Warns Topps Tiles Acquisition Could Hurt Competition

The UK’s Competition and Markets Authority (CMA) has raised concerns over Topps Tiles’ acquisition of 30 CTD Tiles stores, warning that the deal could lead to higher prices and reduced service quality for consumers.

According to the Sky News, the CMA announced on Monday that the merger might result in fewer choices and less favorable deals for customers. Topps Tiles, recognized as the UK’s leading specialist tile retailer, acquired its former competitor CTD Tiles for £9 million after the latter entered administration last year. This acquisition effectively eliminated one of the company’s major rivals from the market.

Per Sky News, Joel Bamford, the CMA’s executive director for mergers, highlighted the potential negative impact on consumers, stating, “Whether you’re retiling your own home or a business that provides renovation services, the merger could make such projects more expensive.”

Related: UK Business Secretary Calls for More Agile Competition Regulator

However, the CMA clarified that only certain regions in Britain would be affected. The regulatory body identified potential competition concerns in four specific areas: Dorking, Edinburgh, Inverness, and Aberdeen. After reviewing internal documents and collecting feedback from customers and competitors, the CMA concluded that, while competition remains sufficient in most areas, consumers in these locations could experience reduced choices and less competitive pricing.

In response, Topps Tiles issued a statement to the stock market affirming its commitment to cooperating with the CMA. “The company will continue to work with the CMA in a constructive and professional manner, as it has done throughout this process. A further announcement will be made in due course.”

Topps Tiles has until February 24 to propose solutions addressing the CMA’s concerns.