Competition and Markets Authority tells Dye & Durham to sell TM Group
The Competition and Markets Authority has told Dye & Durham, an international provider of cloud-based software and technology solutions, that it must sell Swindon-based property search and conveyancing services provider TM Group.
Dye & Durham announced the £91.5 million takeover of “close rival” TM Group in July 2021.
The CMA stepped in over the acquisition deal in May this year, saying the takeover could “substantially lessen competition.”
This week it ruled that Toronto-based Dye & Durham must sell TM Group. The new buyer must be approved by the CMA.
It found the firms were close rivals before the merger and said the evidence shows that the combined business would be the largest provider in the market.
The CMA also found that the merger would only leave two other large national suppliers in the market and that competition from smaller suppliers would not offset the competition lost by the merger.
Richard Feasey, chair of the independent CMA group conducting this inquiry, said: “The merger of two of the biggest players in this market would be bad news for anyone buying or selling property in England and Wales.
“Competition drives innovation and keeps prices down. Without it, we can pay more for worse products and services.
“To address our concerns, Dye & Durham must sell TM Group in its entirety to a suitable buyer.”
Dye & Durham responded: “Dye & Durham strongly disagrees with the CMA’s decision and continues to believe that the acquisition of TMG would be beneficial for the search report market and its customers.
“The company is reviewing the CMA’s Final Report in detail and will carefully consider its options and next steps, including potentially appealing the decision.”