The Competition and Markets Authority (CMA) has launched an investigation into Barratt Developments’ proposed £2.5bn acquisition of Redrow.
In February this year, Barratt revealed the boards of both groups had recommended the all-share combination, which would create the UK’s largest housebuilder.
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 authority is inviting any initial views on the impact that the transaction might have on competition from any interested party until 2 April 2024.
The invitation to comment is the first part of the CMA’s information gathering process in advance of its formal investigation starting.
