Topps Tiles PLC shares gained on Monday after the retailer’s £9 million acquisition of stores from rival CTD Tiles largely cleared regulatory hurdles.
Britain’s Competition and Markets Authority (CMA) ruled the deal did not raise any concerns in 26 of the 30 locations where it would purchase stores, Topps flagged in an update.
Possible issues in Dorking, Aberdeen, Inverness and Edinburgh had been identified, however, leaving shoppers potentially facing worse deals, according to the CMA.
Topps had penned a deal to buy 30 of CTD’s stores last August, when the UK’s second-largest specialist tile retailer fell into administration.
A CMA review into the takeover was subsequently launched in October, prompting competition concerns across some sites to be highlighted.
“The company now has the opportunity to put forward remedies to address these concerns in lieu of a more in-depth investigation,” Topps said.
“The company will continue to work with the CMA in a constructive and professional manner, as it has done throughout this process.”
Shares climbed 2.6% to 35.90p on Monday.