The competition regulator has closed its investigation Barratt Development’s £2.5bn acquisition of Redrow.
The Competition & Markets Authority (CMA) has declared itself satisfied by the remedies put forward by Barratt to address the issues that the watchdog had previously identified.
Barratt and Redrow together are active in more than 400 local areas. The CMA found that their coming together threatened a substantial lessening of market competition in just one local area in Shropshire – where a Barratt development at Tilstock Road in Whitchurch competes with a Redrow development in Kingsbourne, Nantwich.
Barratt has appointed Savills as independent third-party agent to manage the completion of Redrow’s Kingsbourne development. The CMA has approved the arrangement.
Barratt has already completed the acquisition of Redrow in August but can now begin the process of integrating the two businesses, a process expected to take 18 months.
Barratt chief executive David Thomas 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. 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.”
As of today, the company is now called Barratt Redrow plc
