UK's CMA to seeks views on Barratt £2.5bn Redrow takeover

15th Mar 2024 07:21

(Sharecast News) - UK competition regulators on Friday said they were taking an initial look into Barratt's £2.52bn takeover of homebuilding rival Redrow.

The Competition and Markets Authority (CMA) said it was seeking initial views on how the deal could impact competition in the UK.

Its invitation to comment closes on April 2 after which it will decide to launch a full investigation.

The two companies last month reached agreed to an all-share offer from Barratt, which would consolidate its position as Britain's largest housebuilder.

Barratt will control the merged group - to be renamed Barratt Redrow - with a 67.2% stake, while Redrow shareholders keep the remaining 32.8%.

Redrow investors will receive 1.44 new Barratt shares for their own stock. The terms also imply a premium of 27.2% to the closing price per Redrow Share of 600p on February 6.

Reporting by Frank Prenesti for Sharecast.com