CMA gives Barratt Redrow merger clearance

The Competition and Markets Authority (CMA) has accepted Barratt and Redrow’s proposals concerning a local competition issue, meaning the integration of the two housebuilders can go ahead.

Today (October 4), the CMA accepted the housebuilders’ “undertakings” and will not bring a more detailed, Phase 2 investigation into the planned £2.5 billion acquisition of Redrow by Barratt.

In its Phase 1 investigation, the CMA had expressed concern over a potential competition issue in an 11-mile area in Whitchurch, Shropshire. Here, there are four Barratt developments and one Redrow scheme.

On August 8, the organisation said that if the deal went ahead, “it could lead to higher prices and lower quality homes for homebuyers in this catchment area”.

In response, the two housebuilders said they would address the future conduct of sales and build on the Redrow development, which had fewer than ten plots remaining to sell.

Today, CMA stated that Barratt and Redrow’s proposals were “clear-cut and appropriate to remedy, mitigate or prevent the competition concerns identified… and that Savills is a suitable agent to manage the sales process of the unsold plots”.

This potential competition in one local area was the one concern of …