The merger of Barratt and Redrow has been approved, marking the official creation of Barratt Redrow plc.
- This £2.5bn acquisition faced scrutiny from the Competition & Markets Authority over market competition concerns.
- The merger impacts over 400 areas, but competition issues were identified only in Shropshire.
- An independent agent, Savills, is appointed for Redrow’s Kingsbourne development’s completion.
- Integration of Barratt and Redrow operations is projected to span 18 months.
The highly anticipated merger between Barratt and Redrow has been officially sanctioned following extensive review by the Competition & Markets Authority (CMA). The £2.5 billion acquisition clears its final hurdle, forming Barratt Redrow plc. This consolidation aims to bolster the joint capabilities of two leading housebuilders in the UK.
During its investigation, the CMA identified potential competition issues, particularly in Shropshire, where Barratt’s development at Tilstock Road in Whitchurch was found to be in direct competition with Redrow’s Kingsbourne development in Nantwich. To mitigate these concerns, Barratt has enlisted Savills as an independent third-party agent to manage the completion of the Kingsbourne development, a move approved by the CMA.
Operating actively across 400 local areas, the merger promises to enhance service and quality in the housebuilding sector. Barratt’s chief executive, David Thomas, highlighted the strategic advantage of the merger, stating, “Today is a significant milestone for Barratt Redrow, as we come together as one organisation. With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability.”
Thomas further remarked on the comprehensive approach that the newly formed company would undertake to maintain customer focus while delivering a broader range of homes and price points. The integration process, anticipated to take around 18 months, will leverage the strengths of both companies. The objective is to ensure that Barratt Redrow is optimally positioned to deliver long-term value to stakeholders.
Conclusively, the acquisition, completed in August, signals not only the start of a new collaborative era for Barratt and Redrow but also sets a precedent for strategic corporate partnerships in the construction industry.
This merger underscores a forward-thinking strategy in the housebuilding industry, promising enhanced offerings and value.
