The Competition and Markets Authority (CMA) has cleared Barratt Developments’ proposed £2.5bn acquisition of rival housebuilder Redrow.
This February, Barratt revealed that the boards of both groups had recommended the all-share combination, which would create the UK’s largest housebuilder.
However, in March the CMA announced it had launched an investigation into the proposed acquisition.
The CMA said it was considering if the transaction would “result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
The CMA has now confirmed it will not be referring the acquisition to a phase two investigation, clearing the way for the deal to complete.
David Thomas, CEO 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. 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.”
The company has already changed its name to Barratt Redrow and has made a number of appointments to its board of directors. Matthew Pratt has been appointed as chief executive officer, Redrow and group executive director; Geeta Nanda has been appointed as a non-executive director; and Nicky Dulieu has also been appointed as a non-executive director.
Caroline Silver, chair of the company, said: “I am delighted to welcome Matthew, Geeta and Nicky to the board at such an exciting time for our business. With Barratt Redrow, we have created an exceptional housebuilder, capable of delivering more of the high quality homes the country needs. The combined expertise of our board members will help to ensure that we continue to deliver the high quality, service and sustainability that both Barratt and Redrow are known for, whilst achieving a successful integration process which preserves the best of both organisations for the benefit of our people, our customers, our partners and our shareholders.”
