The UK’s competition watchdog is investigating the planned £2.52bn merger of homebuilders Barratt and Redrow.
On Friday 15 March, the Competition and Markets Authority (CMA) announced that it is considering whether the merger would “result in a substantial lessening of competition”.
As an initial step, the CMA added that interested parties should submit comments by 2 April on the impact that the transaction could have on competition in the UK.
“This invitation to comment is the first part of the CMA’s information-gathering process, in advance of the CMA’s formal investigation starting,” it noted.
The planned all-share takeover of Redrow would see Barratt strengthen its position as the biggest homebuilder in the UK. The proposed deal between the two publicly listed companies was announced on 7 February but still requires regulatory and shareholder approval.
A spokesperson for Barratt said: “We are confident that the combination of Barratt and Redrow is in the best interests of customers and will accelerate the delivery of the homes this country needs. We look forward to working constructively with the CMA as they undertake their review.”