CMA to probe whether deal will lead to 鈥渟ubstantial lessening of competition鈥�
The Competition and Markets Authority (CMA) has opened an investigation into Barratt鈥檚 proposed 拢2.5bn merger with Redrow.
In a notice today, the watchdog said it is considering whether the transaction 鈥渕ay be expected to result in a substantial lessening of competition鈥� within the market.
Barratt and Redrow鈥檚 proposed merger would create a housebuilding giant with a combined turnover of 拢7.5bn.
The pair between them delivered more than 22,000 homes last year.
Barratt is already the largest housebuilder in the UK in terms of income while Redrow ranked seventh in Housing Today鈥檚 list last year, which ranks firms by turnover.
The CMA has also today issued an 鈥渋nvitation to comment鈥� to allow organisations to submit views on the proposed deal and how it may affect competition in the UK.
The deadline for responses is 2 April. The CMA鈥檚 full timetable for its inquiry has yet to be confirmed.
Today鈥檚 announcement follows the CMA last month saying it is probing eight housebuilders 鈥� including Barratt and Redrow 鈥� over potential 鈥渁nti-competitive behaviour鈥�.
The other housebuilders being investigated are Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.
More on Barratt鈥檚 proposed acquisition of Redrow
>> Rise of housebuilding 鈥榮uperleague鈥� predicted in wake of Barratt鈥檚 deal for Redrow
>> Barratt鈥檚 acquisition of Redrow: the numbers and key players
>> Barratt and Redrow profit down on day merger between pair announced
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