The Competition and Markets Authority (CMA) is looking into the merger of housebuilders Barratt and Redrow, to determine whether the deal “may be expected to result in a substantial lessening of competition”.
FTSE 100 Barratt and FTSE 250 member Redrow shocked the City by agreeing to merge last month in a £2.5 billion all-share deal. The deal came as both weathered the impact of high interest rates on the sector. Barratt boss David Thomas will lead the new group.
The watchdog has opened an invitation to comment until 2 April.
It has not yet launched a formal inquiry, but could do so depending on the results of the invitation to comment.
The CMA said: “The CMA is issuing this preliminary ‘invitation to comment’ to allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the UK. This invitation to comment is the first part of the CMA’s information-gathering process, in advance of the CMA’s formal investigation starting.
“The CMA may proactively contact companies and organisations that are active in the markets affected by the Merger, or have valuable insights or evidence that could assist the CMA’s investigation.”
The announcement from the CMA comes as rival housebuilder Berkeley says sales rates are down a third from November to the end of last month.
Berkeley added: “Enquiry levels are good, with customers looking for the prevailing political and economic uncertainty to recede and interest rates to begin to fall.”
