Regulator clears £2.5 billion merger of UK housebuilders
08 October 2024
Construction site for Barratt homes in Aberdeen, Scotland (Image: Diana via AdobeStock - stock.adobe.com)
The UK’s Competition and Markets Authority has cleared the merger of two major housebuilders, Barratt and its smaller counterpart Redrow.
Barratt officially took ownership of Redrow’s shares in August and Redrow’s shares were removed from listing on financial markets.
But the two businesses continued to operate independently until the Competition and Markets Authority accepted the undertakings the housebuilders proposed to address competition concerns.
The CMA had been concerned that the merger could affect the housing market in Cheshire, where Barratt is developing housing in Whitchurch and Redrow in Kingsbourne, Nantwich.
The CMA has now accepted the housebuilders’ proposal to user an independent, third-party agent to manage the sale of houses on those developments.
Meanwhile, a CMA-approved monitor will oversee undertakings to maintain Redrow’s quality and service on the site in Nantwich.
The CMA said that it did not have concerns that the merger of the housebuilders would create a monopoly nationally.
CONNECT WITH THE TEAM
