---
title: "Barratt Forges Ahead with Redrow Takeover Amid CMA Concerns"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-08-21T06:00:34+00:00"
modified: "2024-08-20T19:01:50+00:00"
date: 2024-08-21
canonical: "https://stockmark.it/barratt-forges-ahead-with-redrow-takeover-amid-cma-concerns/"
category: "Construction Industry"
categories: ["Construction Industry"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/houses-sm.jpg?fit=480%2C270&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Barratt Forges Ahead with Redrow Takeover Amid CMA Concerns

**Published:** August 21, 2024
**Author:** Stockmark.IT Website
**Categories:** Construction Industry
**Featured image:** ![A quiet city street with parked cars along the kerb, lined with colourful, historic brick buildings under a clear blue sky. The street appears empty, with no pedestrians in sight. @ stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/houses-sm.jpg?fit=480%2C270&quality=89&ssl=1)

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In a bold move, Barratt, the UK’s largest housebuilder, is advancing its £2.5 billion takeover of rival Redrow this week, despite concerns from the Competition and Markets Authority (CMA). The CMA had expressed worries that the merger might harm homebuyers in Whitchurch, Shropshire. On Monday, Barratt announced it would waive the CMA’s conditions for the deal, which is expected to be finalized this week. If the court approves on Tuesday, trading in Redrow shares will be suspended on Thursday, with new Barratt shares issued by Friday. However, full operational integration of both businesses cannot begin until the CMA’s conditions are met.

The CMA’s investigation, launched in March and concluded earlier this month, found no national concerns but noted the potential for “substantial lessening of competition” in Whitchurch, where both companies hold significant land. This could lead to higher prices and lower-quality homes. Barratt pointed out that the CMA’s concerns pertained to just one of the 400 local areas they operate in, with fewer than 10 plots left to sell. The company is actively engaging with the CMA to address its “limited concerns” and avoid further investigation.

By waiving the conditions, Barratt aims to eliminate uncertainty for employees, suppliers, and stakeholders. This option allows legal completion but results in an initial enforcement order from the CMA, which permits completion while preventing full integration until concerns are resolved. Consequently, the two businesses will operate separately until an agreement with the CMA is reached, delaying the appointment of board members for the new combined group and postponing the adoption of the Barratt Redrow name.

Barratt intends to begin full integration as soon as possible, aiming to complete the process within 18 months. David Thomas, Barratt’s CEO, will lead the new group, with Barratt shareholders retaining 67.2% and Redrow shareholders holding 32.8%. The Redrow brand will continue to market new homes and its Heritage Collection, targeting affluent buyers. Following the announcement, Barratt’s shares rose by 4%, making it one of the top risers on the FTSE 100, while Redrow shares increased by 2%.

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**Original URL:** https://stockmark.it/barratt-forges-ahead-with-redrow-takeover-amid-cma-concerns/
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