The UK’s Competition and Markets Authority (CMA) has indicated potential acceptance of measures proposed by and , which could finalise their merger agreement.
Barratt agreed to acquire Redrow in an all-stock transaction valued at 拢2.52bn ($3.28bn) earlier this year.
The merger is proceeding through a court-approved scheme of arrangement as per Part 26 of the Companies Act 2006.
The CMA’s initial review, which concluded on 8 August 2024, identified no significant competition concerns across the UK, except for one local area where the overlap of the two companies’ operations was minimal.
To address the CMA’s concerns and avoid a detailed Phase 2 investigation, Barratt and Redrow have proposed certain undertakings. On 15 August, these proposals were submitted to the CMA.
The regulatory authority said: 鈥淭he CMA considers that there are 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.鈥�
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By GlobalDataThis pending decision potentially eliminates the need for further investigation.
Following court approval, Barratt now holds all issued and future shares of Redrow.
An initial enforcement order from the CMA mandates that Barratt and Redrow maintain separate operations until formal acceptance of the undertakings or approval of integration.
The CMA has until 18 October this year to make a decision, with an option to extend to 13 December if necessary.
Updates will be provided by the bodies as developments occur. Legal advice for the transaction is being provided by for Barratt and Slaughter and May for Redrow.
