The Competition and Markets Authority or CMA in UK announced on Monday that the acquisition by Topps Tiles Plc (TPT.L) of certain assets of Tildist Realisations Ltd, formerly CTD Tiles Ltd., is expected to impact the competition levels in select UK markets. The CMA said that the merger would be referred to an in-depth, phase 2 investigation, unless all the parties involved provide an acceptable undertaking to solve the competition concerns by February 24.
In a statement, the CMA said that the acquisition raises realistic concerns of a substantial lessening of competition or SLC due to horizontal unilateral effects in the supply of tiles to retail customers and in supplying tiles to trade customers in four areas, namely, Dorking, Edinburgh, Inverness and Aberdeen, across the country.
Specialist tile retailer Topps Tiles had acquired CTD in August last year for a sum of 9 million pounds. 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.
The CMA in October last year had announced about the Phase 1 investigation of the transaction under UK merger control.
Topps Group, in its statement, noted that the CMA found that the transaction has generated no competition concerns in the majority of areas reviewed.
CMA agreed with the company that its acquisition of the CTD commercial tile operations did not raise any competition concerns. In 26 out of 30 locations where retail stores were acquired, no local competition concerns were identified, the firm noted.
On the LSE, the stock is trading at 36.42 pence, up 4%.
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