Barratt finalizes Redrow takeover plan

The Competition & Markets Authority (CMA) has officially concluded its investigation into Barratt Development’s acquisition of Redrow, clearing the final hurdle for the £2.5 billion merger to proceed.

The agreement for the merger between Barratt Developments and Redrow was reached in February, with the aim of creating a powerhouse housebuilder generating £7.45 billion in turnover and delivering more than 22,600 homes annually.

Initially, the CMA had expressed concerns that the takeover could impact the pricing of new homes in the vicinity around Whitchurch, Shropshire, encompassing neighbouring towns such as Nantwich, Ellesmere, and Market Drayton.

An examination revealed that both housebuilders currently possess a significant combined share of the land in the area surrounding the Barratt development at Tilstock Road, alongside Redrow’s development at Kingsbourne in Nantwich.

In response to these concerns, Barratt and Redrow proposed measures such as engaging property agents from Savills as an intermediary for selling the houses, which have now received approval from the CMA.

Furthermore, a CMA-sanctioned monitor will supervise agreements to uphold Redrow’s construction quality and service standards at the Kingsbourne site in Nantwich.

Although Barratt completed the acquisition of Redrow in August prior to the CMA’s approval, the integration of the two entities can now commence, a process anticipated to span 18 months.

Expressing his thoughts on the milestone, Barratt CEO David Thomas affirmed, “This marks a significant moment for Barratt Redrow as we unify into a single entity. Through this amalgamation, we have established an exceptional housebuilder renowned for quality, service, and sustainability, capable of expediting the delivery of homes essential for our nation.”

Thomas added, “By joining forces, we are able to offer a broader array of homes at varying price points for our esteemed customers, who remain our top priority. Our primary focus now is on seamless integration to maximise the benefits of this merger.”

“We will leverage the strengths of both companies to bring substantial advantages to our employees, customers, and supply chain partners, while ensuring that Barratt Redrow is primed to provide enduring value to all stakeholders,” Thomas concluded.