The competition watchdog has given its final clearance for the merger of housebuilders Barratt and Redrow.
The Competition and Markets Authority (CMA) launched an investigation into the proposed £2.5bn deal in June after it was first announced in February. The deal was completed in August without regulatory approval after the CMA suggested there were reasonable grounds to believe it would go ahead.
Today, the Competition and Markets Authority has given the official greenlight for the deal, with Barratt chief, David Thomas, describing the clearance as a “significant milestone” for Barratt Redrow, as it “comes 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,” he added.
“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.”
The decision represents final determination of the CMA’s investigation.
The CMA was probing as to whether its investigation needed to be escalated to phase two, over competition concerns. In particular this linked to local competition concerns.
Following the clearance, Barratt said it will “now commence the integration of the businesses” and said its “intention remains to substantially complete the implementation of an integration plan within 18 months”, of the purchase date. It said “synergies” from the deal are due to be fully realised within three years.
According to Sky News, the merger could cost 10 per cent of jobs across the two businesses. It is also hoped to save up to £90m a year in costs.
In its most recent results, Barratt said its total home completions in the year ended 30 June reached 14,004, down 18.6 per cent from 17,206 in 2023 but at the upper end of the company’s expectations.