Barratt/Redrow merger expected to complete this week

Barratt intends to complete its £2.5 billion merger with Redrow this week, after waiving a Competitions and Markets Authority (CMA) condition for approval.

At the same time, the two housebuilders are “continuing to engage” with the CMA over a concern that their presence in Whitchurch, Shropshire “could lead to higher prices and lower quality homes for homebuyers in this catchment area” as reported on August 8.

In a statement today (August 19), Barratt said the waiver of the CMA condition would eliminate uncertainty for the employees, supply chain and wider stakeholder groups of both companies and “allows us to accelerate the creation of an exceptional UK homebuilder in terms of quality, service and sustainability, which in turn can accelerate the delivery of high-quality, sustainable homes and communities for customers across the UK, addressing the country's need for homes”.

The two housebuilders said they expected the CMA to apply an initial enforcement order (IEO), preventing further integration of the two businesses until the CMA’s inquiry is satisfied.

Barratt still intends to complete its integration plan within 18 months of the merger’s completion this week. But the imposed IEO means that certain elements are subject to CMA approval. …