CMA Approves Barratt and Redrow Merger

The £2.5 billion merger between housebuilders Barratt and Redrow has been approved by the UK's Competition and Markets Authority (CMA), following measures to address competition concerns. The CMA expressed worries about potential price increases and reduced home quality in Whitchurch and Nantwich due to the companies' overlapping developments. To mitigate these concerns, the firms agreed to appoint Savills as an independent agent to manage remaining home sales and committed to maintaining Redrow’s quality standards. The merger is expected to be fully integrated within 18 months, with anticipated annual cost savings of at least £90 million. Barratt's CEO, David Thomas, emphasized the merger's role in accelerating home delivery and expanding housing options. The combined entity, Barratt Redrow, is projected to build about 23,000 homes annually with a turnover exceeding £7 billion.