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Barratt-Redrow merger cleared by competition watchdog

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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. 

Credit: Barratt Developments.

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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