The merger between Barratt and Redrow is set to be finalized following approval from the UK’s competition watchdog.
The Competition and Markets Authority (CMA) announced that it had accepted commitments from both companies to resolve concerns about potential competition issues in specific local markets, allowing the deal to proceed without a more in-depth phase 2 investigation.
As part of the agreement, the companies will appoint Savills as an independent third-party agent to oversee the sale of the remaining unsold homes at Redrow’s Nantwich site.
The newly formed entity, Barratt Redrow, is expected to build around 23,000 homes annually, generating more than £7 billion in revenue. Trading under the new name on the London Stock Exchange begins today.
After the £2.5 billion deal was announced in February, Barratt officially acquired Redrow’s shares in August, leading to Redrow’s delisting from financial markets.
Barratt has announced that the integration process of the two businesses will take approximately 18 months.
Barratt CEO David Thomas, who will lead the merged company, called the event a “significant milestone for Barratt Redrow, as we unite into one organisation.”
He added that the merger would allow the combined company to “accelerate the delivery of much-needed homes in the UK,” and that their focus is now on integrating the businesses smoothly to achieve the anticipated benefits.
Matthew Pratt, CEO of Redrow, will continue to oversee Redrow operations within the larger group and will join the board.
