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Dye and Durham ‘evaluating options’ as CMA orders TM Group sale

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  • 03/08/2022
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Dye and Durham has said it will consider its options regarding the acquisition of TM Group following an order from the Competition and Markets Authority (CMA) to sell it to a third party.

The regulator said the Toronto-based software company should dispose of the property search firm as the acquisition “substantially lessens competition in the supply of property search services in England and Wales”. 

Property search reports give buyers and sellers information about a property, such as title deeds and planning restrictions, before a sale goes ahead. Reports are ordered by conveyancers, solicitors, estate agents and mortgage brokers on behalf of clients and charges for the services are typically included in conveyancing fees. 

Dye and Durham acquired TM Group from Connells and LSL last year in an £88m deal. 

The CMA said it was not notified about the deal, but as part of its ongoing monitoring of mergers and acquisitions found it raised concerns. It began an initial investigation in October last year before that was referred for an in-depth probe overseen by an independent inquiry group in December. 

The two firms were identified to be competitors before the merger, and it was found that the combining of the businesses would leave only two major providers in the sector, limiting the ability of smaller firms to compete. 

The CMA concluded that the merger would reduce competition and result in less innovation, higher prices and lower quality in the market. The regulator said TM Group should be sold to an approved third party. 

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 and Durham must sell TM Group in its entirety to a suitable buyer.” 

Dye and Durham said it “strongly disagrees with the CMA’s decision and continues to believe that the acquisition of TM Group would be beneficial for the search report market and its customers.” 

It added: “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.” 

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