Proactive Investors - Housebuilder Barratt Developments PLC (LON:BDEV) is expected to finalise its acquisition of competitor Redrow PLC (LON:RDW) “later this week”, the two companies announced in a joint statement.
The £2.5 billion all-share deal announced in February had come under the gaze of the Competition and Market Authority, which launched a Phase 1 investigation in March.
But the CMA stopped short of pursuing a Phase 2 investigation after concluding that the duo has a "high combined share" in just one local area of Whitchurch, Shropshire.
To remove uncertainties, Barratt has decided to waive the CMA condition, allowing the combination to proceed.
However, it is anticipated that the CMA will impose an Initial Enforcement Order (IEO) post-completion, delaying full integration until suitable undertakings are agreed upon.
“Barratt and Redrow are continuing to engage with the CMA with the objective of agreeing suitable undertakings which would address the CMA's limited concerns and avoid the need for a reference to a full Phase 2 investigation,” the joint statement read.