£2.5bn Barratt Redrow merger completes

The Competition and Markets Authority has approved Barratt’s acquisition of the Flintshire-based housebuilder.

The £2.5bn merger means Redrow shareholders now hold approximately 32.8% of the combined group and Barratt shareholders have approximately 67.2%.

The housebuilders estimate the deal, first announced in February, could result in savings of £90m a year.

Now Barratt’s acquisition of Redrow has completed, the company boasts a pipeline of almost 100,000 homes across the UK.

Due to the size of the deal, the CMA launched a review to explore whether it would result in a monopoly in the housing market.

The CMA raised concerns about an 11-mile radius around Whitchurch in Shropshire, which includes Nantwich over the border in Cheshire, where the two companies have significant land holdings.

The CMA was concerned that this could lead to “higher prices and lower quality homes for homebuyers” in the area.

However, Barratt Redrow was able to address the CMA’s concerns, allowing the deal to complete.

David Thomas, chief executive 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.”

He added: “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.”

Barratt Redrow’s share price was 482p at the time of writing. Share prices were down across the board at other listed housebuilders.