Merger Update: Barratt/Redrow

"CMA to consider undertakings offered"

Completed acquisition by Barratt Developments plc of Redrow plc

On 8 August 2024, the CMA decided, on the information currently available to it, that it is or may be the case that this Merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.

On 15 August 2024, the Parties offered undertakings in lieu of a reference to the CMA, which relates to Redrow's entire overlapping area in the Kingsbourne, Nantwich development that has planning consents for the development of 324 homes, subject to a number of commitments: (i) appointing an independent third-party to sell the unsold houses; (ii) ensuring that unbuilt houses and unbuilt infrastructure are constructed to Redrow's quality standards and for construction to be completed in a timely manner; and (iii) providing aftersales services to all homebuyers to a level meeting or exceeding each of Redrow's pre-Merger standards.

The CMA considers that there are reasonable grounds for believing that the undertakings offered by the Parties, or a modified version of them, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA.

The CMA now has until 18 October 2024 to decide whether to accept the undertakings, with the possibility to extend this timeframe to 13 December 2024 if it considers there are special reasons for doing so.

The text of this decision will be placed on the Competition and Market Authority's website at Barratt/Redrow merger inquiry as soon as is reasonably practical.

In the event of media enquiries please email Press@cma.gov.uk.

For Publicity:

The full title of the Merger Case: Completed Acquisition by Barratt Developments plc of Redrow plc

The affected market: building and construction

The merger reference code: ME/7089/24