Merger Update: Barratt / Redrow

Consultation on undertakings in lieu: Completed Acquisition by Barratt Developments plc of Redrow plc

The Competition and Markets Authority (CMA) has opened a consultation on undertakings in lieu of reference offered by the Parties to address competition concerns identified by the CMA over the completed acquisition by Barratt Developments plc of Redrow plc. (the Merger).

On 8 August 2024, the CMA announced that it would refer the Merger for an in-depth, Phase 2 investigation unless the Parties offered acceptable undertakings in lieu to address the CMA's concerns.

To address the CMA's concerns, 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.

On 21 August 2024, the CMA announced that it would look in detail at these offered undertakings in lieu. The CMA has until 18 October 2024 to consider whether to accept the undertakings in lieu, or a modified version of them. As part of this process, the CMA is now consulting publicly on whether the proposal is sufficient to address the competition concerns identified by the CMA.

Before reaching a final decision, the CMA is therefore inviting interested parties to make their views known. The deadline for responses is 26 September 2024.

The consultation on the offered undertakings in lieu and all other information relating to this merger investigation can be found on the dedicated case page on the CMA's website at Barratt/Redrow merger inquiry.

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