CMA accepts undertakings, clears Barratt acquisition of Redrow

4th Oct 2024 12:19

(Sharecast News) - Barratt Developments announced on Friday that the UK Competition and Markets Authority (CMA) had cleared its acquisition of Redrow, following a consultation on undertakings offered by both companies.

The FTSE 100 housebuilder said the clearance marked the final determination of the CMA's investigation, allowing the deal to proceed without being referred to a phase two in-depth review.

It said the acquisition, first announced in February, saw it acquire the entire share capital of Redrow in an all-share deal.

With the CMA's clearance, Barratt said it could now begin integrating the two businesses.

The initial enforcement order issued by the CMA had been lifted, and Barratt said it planned to complete the integration within 18 months of the combination's completion, which was on 21 August.

Synergies from the merger were expected to be fully realised within three years.

"Today is a significant milestone for Barratt Redrow, as we come together as one organisation," said chief executive officer David Thomas.

"With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability, able to accelerate the delivery of the homes this country needs.

"Together, we offer a broader range of homes and price points for our customers who we will continue to put at the heart of everything we do."

Thomas said the company's focus was now on integrating the businesses as efficiently and effectively as possible, to deliver the expected benefits of the combination.

"We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensure that Barratt Redrow is set up to deliver long term value to all of its stakeholders."

At 1200 BST, shares in Barratt Developments were up 0.44% at 483.4p.

Reporting by Josh White for Sharecast.com.