£2.5bn housebuilder mega-merger completed after CMA approval

Leicestershire housing giant Barratt has finalised its £2.5bn acquisition of North West housebuilder Redrow after receiving approval from the Competition and Markets Authority (CMA).

The merger, initially announced in February, was investigated by the competition regulator due to concerns about potential reductions in local market competition.

The CMA has accepted Barratt and Redrow’s proposals to address these concerns, and the deal will not undergo a phase 2 investigation.

As part of the agreement, Savills has been appointed as a third-party agent to oversee the sale of unsold homes at Redrow’s Nantwich site.

The CMA considers Savills suitable for this role as it is independent of the merged entity and possesses the necessary resources and expertise in new-build housing sales.

The shareholders of Leicestershire-based Barratt and North West’s Redrow voted in May to progress the mega-deal, to create a group that turned over £7.5bn last year and will have a land pipeline of over 92,000 plots.

Redrow’s current CEO, Matthew Pratt will assume the role of group chief executive and Nicky Dulieu and Geeta Nanda will join the board as non-executive directors.

Barbara Richmond, Redrow’s chief financial officer will take on a dual role as group integration and synergies director, responsible for overseeing the merger’s integration for at least a year.

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