Barratt takes ownership of Redrow shares

Shareholders approved Barratt’s proposed multibillion-pound merger with rival Redrow in May.

However, after the deal emerged, the CMA announced that it was looking into the acquisition over potential harm to the market, and launched a phase-one merger inquiry.

Earlier this month, the CMA revealed that the inquiry did not raise UK-wide competition issues, but it did have concerns that the merger could lead to a lack of competition in one area around a Barratt development in Whitchurch.

Barratt and Redrow had the opportunity to submit proposals addressing these concerns, to avoid the deal moving to an in-depth phase-two review.

On Monday, Barratt said it would waive clearance from the CMA and complete the £2.5bn deal this week.

The CMA said yesterday that it may not need to begin a phase-two investigation into the merger, as it considered there were “reasonable grounds for believing that the undertakings offered by the parties or a modified version of them” could be accepted.

It added that it will publish the full text of its decision soon.

The CMA has until 18 October to decide whether to accept the undertakings, with the possibility to extend the deadline to 13 December.

The house builders’ boards agreed the deal in February.