TM Group merger with Dye & Durham draws closer

The merger between TM Group and Canadian software giant Dye & Durham (D&D) could be one step closer after the Competition & Markets Authority (CMA) granted D&D permission to reorganise its business and make various changes to key staff.

While the CMA’s timeline has not changed D&D are required to hold its business separate from the TM Group should the merger fail again at the last hurdle.

But in an answer to a derogation letter – a letter asking to change certain terms of the deal – the CMA says D&D can make changes as the firm moves from a country-led operating model.

CMA

Adam Cooper, CMA director, remedies, business and financial analysis, writes in his response to the derogation request that the CMA will allow the changes so long as they don’t impact on the viability or ongoing operation of the D&D or D&D UK businesses.

The change is also being allowed on the basis it will not lead to any integration of the TMG and D&D or D&D UK businesses or indeed prevent any remedial action that the CMA may need to take regarding the merger.

The biggest merger in the industry’s recent supplier history was derailed last month.

The CMA had declared the acquisition of TM Group to be anti-competitive – it was sold to Dye & Durham back in July 2021 for £90m by LSL and Connells, who were joint owners of the company. The deal was not referred to the CMA at the time.

A spokesman for D&D says of the derogation letter: “This pertains to a realignment of our business in Canada, UK and Ireland. We’re shifting from a country-led operating model to one centred around our functions (areas like product, sales, operations, etc).

“Our business is performing really well and this realignment simplifies our structure, lets us serve our customers even better and breaks down silos between our teams.”