British housebuilders Barratt Developments and Redrow Plc are moving forward with a £2.5 billion merger despite concerns from the Competition and Markets Authority (CMA). Barratt announced the initiation of the takeover process this week, even though the firms will remain separate until approval is received from the CMA. The CMA has expressed concerns over the deal potentially leading to higher prices and lower-quality homes in Whitchurch, Shropshire, where both companies have developments. Barratt is confident in resolving these issues and plans to accelerate the merger, aiming to deliver high-quality, sustainable homes across the UK. An enforcement order preventing integration is expected until the CMA’s concerns are addressed. The merger, set for completion within 18 months, expects to cut around 10% of jobs, saving £90 million annually. Market conditions show signs of improvement with rising demand in the housing market.
Real Estate Development, Regulatory Compliance,United Kingdom
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