CMA clears merger of two leading housebuilders

Following a detailed Phase I investigation, on 4 October 2024 the UK Competition and Markets Authority (CMA) accepted undertakings relating to one local area and granted conditional approval to Barratt to acquire Redrow. This brings together the UK’s largest and fifth largest housebuilders.

The CMA investigated horizontal concerns both at the national and local level.  The CMA adopted a decision rule approach to assess whether Barratt and Redrow would face sufficient competition post-merger in the local areas where both Parties held land with planning permission.  While the Parties overlapped in over 400 local catchment areas, the CMA identified concerns in only one area, centred on the Barratt development in Whitchurch, which includes Redrow’s development in Nantwich, with fewer than 10 plots remaining to sell.

The CMA found that the merged business will continue to face competition from rivals nationally and in all other overlapping local areas, including from large and smaller housebuilders, with an additional strong constraint coming from second-hand homes.

RBB assisted Barratt throughout a risk assessment and the notification, including submissions on the CMA’s proposed local assessment methodology and the competitive constraint from second-hand homes.  RBB's team, led by Tristan LécuyerTristan LécuyerPartner and Paul ReevePaul ReevePartner, and supported by Joost BoutenJoost BoutenAssociate Principal, worked alongside Linklaters team led by Natura Gracia.