CMA may accept Barratt/Redrow proposals to address local competition

The Competition and Markets Authority (CMA) has indicated it may accept Barratt and Redrow’s proposals to rectify the local competition issue it identified in the investigation into the housebuilders’ planned merger.

The CMA’s acceptance of the housebuilders’ “undertakings” would avoid a full Phase 2 investigation, clearing the path for the £2.5 billion integration of the two businesses to take place.

On Monday (August 19), Barratt said it intended to complete the merger this week, after waiving a Competitions and Markets Authority (CMA) condition for approval.

Today (August 21), the CMA said it considered there were “reasonable grounds for believing that the undertakings offered by the Parties or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002”.

This follows the organisation announcing on March 16 that it would investigate the deal, revealed on February 7. The CMA has considered whether the deal would result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United …