The Competition and Markets Authority (CMA) has cleared Leicestershire-based housebuilding giant Barratt’s £2.5 billion purchase of rival Redrow Homes.
It follows the CMA concluding a Phase 1 investigation into the deal, where it found an area of concern regarding the supply of new build private residential housing in Whitchurch and Nantwich.
The businesses each have major, competing, developments in one of the towns and have agreed to sell remaining homes through an independent agent, with Savills appointed for this.
Moreover, a monitoring trustee and an independent professional quantity surveyor will be appointed to monitor and oversee the merged entity’s compliance with commitments including that unbuilt houses and unbuilt infrastructure in Redrow’s Kingsbourne development in Nantwich are constructed to Redrow’s quality standards and completed in a timely manner; and that aftersales services are provided to all homebuyers to a level meeting or exceeding Redrow’s pre-merger standards.
The CMA has now published its acceptance of Barratt and Redrow’s undertakings and will not be referring the acquisition to a phase 2 investigation.
Barratt will commence the integration of the businesses.
David Thomas, CEO of Barratt, said: “Today is a significant milestone for Barratt Redrow, as we come together as one organisation. With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability, able to accelerate the delivery of the homes this country needs.
“Together, we offer a broader range of homes and price points for our customers who we will continue to put at the heart of everything we do. Our focus now is on integrating our businesses as efficiently and effectively as we can to deliver the expected benefits of the Combination.
“We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensuring that Barratt Redrow is set up to deliver long term value to all of its stakeholders.”
