CMA launches investigation into £2.5bn Barratt-Redrow merger
The competition watchdog has launched a formal investigation into the £2.5bn tie-up between Barratt and rival housebuilder Redrow, the agency announced this morning.
The Competition and Markets Authority (CMA) said it will decide on whether to refer the housebuilding merger for a phase two investigation by early August.
The newly merged group would be expected to build about 23,000 homes a year and make more than £7bn in revenue.
Barratt said in March the deal would create the UK’s largest housebuilder and would help accelerate the “delivery of homes this country needs”.
However, the deal came shortly before the CMA published its review on the UK’s housebuilding sector, which hardly showered the industry with glory.
A Barratt spokesperson said: “We are confident that the combination of Barratt and Redrow is in the best interests of customers and will accelerate the delivery of the homes this country needs. We look forward to working constructively with the CMA as they undertake their review.”
Redrow have been contacted for comment.
This week, it was reported that England’s house building pipeline is at the lowest level since records began 17 years ago, piling pressure on the next government to mend a “deepening housing crisis”.
Ahead of the general election on 4 July, housebuilding has been a major topic of conversation, with Labour’s deputy leader Angela telling City PM earlier this month that the party would ramp up housebuilding if it wins the election.
Labour said it invited developers to work in “lock step” with the party to deliver 1.5m new homes over the next five years.
The Conservatives, who according to one poll this week have now fallen behind Nigel Farage’s Reform, pledged to support first time buyers and build 1.6m homes, if they win.