CMA to probe whether deal will lead to “substantial lessening of competition”
The Competition and Markets Authority (CMA) has opened an investigation into Barratt’s proposed £2.5bn merger with Redrow.
In a notice today, the watchdog said it is considering whether the transaction “may be expected to result in a substantial lessening of competition” within the market.
Barratt and Redrow’s proposed merger would create a housebuilding giant with a combined turnover of £7.5bn.
The pair between them delivered more than 22,000 homes last year.
Barratt is already the largest housebuilder in the UK in terms of income while Redrow ranked seventh in Housing Today’s Top 50 Housebuilders list last year, which ranks firms by turnover.
The CMA has also today issued an “invitation to comment” to allow organisations to submit views on the proposed deal and how it may affect competition in the UK.
The deadline for responses is 2 April. The CMA’s full timetable for its inquiry has yet to be confirmed.
Today’s announcement follows the CMA last month saying it is probing eight housebuilders – including Barratt and Redrow – over potential “anti-competitive behaviour”.
The other housebuilders being investigated are Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.
More on Barratt’s proposed acquisition of Redrow
>> Rise of housebuilding ‘superleague’ predicted in wake of Barratt’s deal for Redrow
>> Barratt’s acquisition of Redrow: the numbers and key players
>> Barratt and Redrow profit down on day merger between pair announced
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