Barratt Developments and Redrow are set to complete their merger this week despite ongoing scrutiny from the Competition and Markets Authority (CMA).
The CMA’s Phase 1 investigation, which concluded on August 8, 2024, found no UK-wide competition issues but raised concerns about the supply of newly built private residential housing in one local area out of over 400 where the companies overlap. The one sticking point is an area in Shropshire relating to just ten plots.
In response, Barratt has waived the CMA clearance condition, allowing the merger to proceed. However, the CMA is expected to impose an initial enforcement order (IEO) following completion, preventing the integration of the two businesses until proposed undertakings are agreed upon. This move is in line with the CMA’s standard practice to prevent actions that might prejudice their process.
On Monday, Barratt announced strategic plans for the combined group, including key appointments and branding decisions. The new company will be called Barratt Redrow plc.
The company intends to begin full integration as soon as permissible, aiming to complete the process within 18 months of completion.
Redrow shares were 2.9% higher at the time of writing, while Barratt’s rose 1.2%.