Barratt and Redrow £2.5bn merger agreed as monopoly fear allayed

Published On Oct 4, 2024, 9:43 AM

Barratt Developments and Redrow, two major UK housebuilders, have agreed to a £2.5 billion merger after addressing concerns raised by the Competition and Markets Authority (CMA) regarding potential monopoly effects in specific areas. The CMA was particularly worried about price impacts in Whitchurch and nearby towns, but accepted the companies' proposal to sell remaining homes via independent agents to mitigate these concerns. The merger is expected to generate annual savings of £90 million over three years, despite a one-time restructuring cost of £73 million, which may result in a 10% job reduction across the combined business. Leaders of both companies believe the merger will enhance quality and efficiency in homebuilding.