CMA investigating Barratt and Redrow merger

The takeover had been expected to complete later this year.

When the deal was announced last month, which saw Barratt Homes acquire all issued shares of Flintshire-based Redrow Homes for £2.5bn, the housebuilders estimated it could result in savings of £90m a year.

If the acquisition does complete, Redrow shareholders will hold approximately 32.8% of the combined group and Barratt shareholders will hold approximately 67.2%.

But according to a statement issued on the CMA section of the government’s website, the body is considering whether the merger will cause a lessening in competition within the market, and is seeking views before a formal investigation gets going.

The CMA has opened invitations from any interested parties to comment on the deal from today, 15 March, until 2 April.

In terms of a timetable for the investigation there is currently no date set for the statutory deadline by when any decision will be announced.

Companies and organisations which are active in the housebuilding market, and could be affected by the merger, or “have valuable insights or evidence that could assist the investigation”, could be contacted by the CMA.