CMA to look into Barratt/Redrow deal

The Competition and Markets Authority is investigating the anticipated £2.5 billion acquisition of Redrow by Barratt.

The deal to bring the two firms together was announced last month. The recent Housing Market Intelligence Report shows that the combined housebuilder, looking at recent years, could build more than 22,000 homes a year on a turnover of £7.4 billion.

The CMA is considering whether the deal will 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 Kingdom for goods or services.

The CMA is issuing this preliminary “invitation to comment” to allow interested parties to submit any initial views on the impact that the transaction could have on competition in the UK. This will be the first part of the CMA’s information-gathering process, in advance of the CMA’s formal investigation starting.

The CMA says it may proactively contact companies and organisations that are active in the markets affected by the merger or have valuable insights or evidence that could assist the CMA’s …