Topps Tiles' £9 million acquisition of CTD Tiles has moved closer to final approval after the Competition and Markets Authority (CMA) provisionally accepted the retailer's proposed solutions to competition concerns.
Photo: Dreamstime.
The CMA initially raised issues that the takeover, which includes 30 CTD Tiles stores, could reduce competition in parts of England and Scotland. To address this, Topps Tiles and CTD proposed divesting stores in Dorking, Edinburgh, Inverness, and Aberdeen.
In a statement to the London Stock Exchange, Topps Tiles said it would continue to engage with the CMA in a 'constructive and professional manner' as the regulator finalises its decision. The CMA has until 1 May to determine whether the proposed remedies are sufficient, or if further investigation is required.
If fully approved, the acquisition would strengthen Topps Tiles' position in the UK tile market as part of its ongoing expansion strategy.
The progress comes as Topps Tiles chief executive Rob Parker prepares to step down after 18 years. His departure follows the company's return to sales growth, with group sales rising 4.6% in the 13 weeks to 28 December and increasing 12.9% in the most recent five-week period. The retailer attributed the improvement to "robust growth" in trade revenue at both Topps Tiles and Pro Tiler, which saw increases of 13.5% and 20% respectively.
Source: www.retailgazette.co.uk