Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Watchdog steps up probe into Barratt’s £2.5bn Redrow takeover

The two housebuilders announced the tie-up in February (David Davies/PA)
The two housebuilders announced the tie-up in February (David Davies/PA)

The UK’s competition watchdog has started a formal investigation into housebuilder Barratt’s £2.5 billion deal to buy rival Redrow.

The Competition and Markets Authority (CMA) said on Friday that it is looking into whether the buyout, announced earlier this year, will hurt competition.

It comes after the CMA announced an initial probe in March. That has now stepped up into an official inquiry. The watchdog said it will report its findings by August 8.

The two housebuilders agreed an all-share deal in February which would see them become Barratt Redrow.

People working on the roof of a new home being built
Barratt and Redrow agreed an all-share deal in February which would see them become Barratt Redrow (PA)

The new group would be expected to build about 23,000 homes a year and make more than £7 billion in revenue.

They said it creates an opportunity to bring together two “highly complementary” companies and accelerate the building of “much-needed” homes across the country.

When two large companies combine it can lessen choice for customers and lead to higher prices or lower quality services.

The watchdog has the power to block a merger or enforce changes to address its concerns once it has investigated the potential risks.

It comes after Crest Nicholson confirmed that it rejected two takeover offers by rival Bellway last month, including one worth £650 million.

The bids are the latest example of consolidation attempts among housebuilders, as the sector struggles through a period of weak demand due to high mortgage rates.

A spokesperson for Barratt said: “We are confident that the combination of Barratt and Redrow is in the best interests of customers and will accelerate the delivery of the homes this country needs.

“We look forward to working constructively with the CMA as they undertake their review.”

Redrow was approached for comment.