The Competition and Markets Authority (CMA) in the UK has expressed concerns regarding Topps Tiles' £9 million acquisition of 30 CTD Tiles stores, highlighting potential negative impacts on competition in four specific areas: Dorking, Edinburgh, Inverness, and Aberdeen.

Topps Tiles is the largest specialist tile retailer in the UK, while CTD was the second largest before entering administration in August 2024. The acquisition included not only the stores but also essential infrastructure such as stock and intellectual property related to CTD Tiles and its associated brands.

Following the deal, the CMA received multiple complaints from businesses and retail customers about the potential effects on competition. A Phase 1 investigation revealed that while most areas have sufficient competition, the four identified locations could experience reduced competition, leading to worse deals and service for customers.

Joel Bamford, Executive Director for Mergers at the CMA, emphasized the concern that the merger could make home renovation projects more expensive for both individual consumers and businesses. Topps Tiles has been given until February 24 to propose solutions to address these competition concerns, or the case will move to a more detailed investigation.