The Competition and Markets Authority (CMA), responsible for reducing anti-competitive activities in business, has cleared the £2.5 billion merger between Barratt Developments and Redrow.

It follows an initial review by the competition watchdog, which found the acquisition of Redrow by Barratt raised potential ‘competition concerns’ in the supply of new-build private residential housing in one local area around a Barratt development in Whitchurch, which includes another in Nantwich by Redrow.
To address the ‘realistic prospect of a substantial lessening of competition’ (SLC) in the overlapping areas, the developers signed a mandate with real estate company Savills, agreeing to meet certain commitments and criteria, allowing the deal to proceed.
In a decision noticed published today, the CMA wrote: “[…] the CMA considers that the [undertakings] provided by the parties are as comprehensive a solution as is reasonable and practicable and remedy, mitigate or prevent the SLC identified in the SLC Decision and any adverse effects resulting from it.”
It added: “The CMA has therefore decided to accept the [undertakings] offered by the parties […] the merger will therefore not be referred for a phase 2 investigation.”
Barratt chief executive, David Thomas, said the result is a “significant milestone” for Barratt Redrow “as we come together as one organisation”.
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