The Competition and Markets Authority has launched a formal investigation into Barratt’s plans to acquire rival housebuilder Redrow for £2.5bn.
The watchdog previously investigated whether the takeover would result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.
It issued a preliminary “invitation to comment”, in March to allow interested parties to submit any initial views on the impact the transaction could have on competition in the UK.
It has now launched the formal investigation into the merger, having determined the merger meets the requirements of section 96(2) of the Enterprise Act 2002.
The deadline for the CMA to announce its decision whether to refer the merger for a phase 2 investigation is 8 August.
The investigation has been launched during a separate investigation by the CMA into eight major housebuilders – Barratt, Redrow, Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – regarding the companies allegedly “sharing commercially sensitive information” with their rivals.
Image from Redrow
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