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Barratt Developments PLC on Friday announced it has received clearance from the UK Competition and Markets Authority for its merger with Redrow PLC. The Leicestershire, England-based housebuilder said that, following a consultation on undertakings in lieu of reference to an in-depth phase 2 investigation, the CMA has published its acceptance of the undertakings, and will not be referring the acquisition to a phase 2 investigation. Barratt struck the £2.52 billion deal with Flintshire, Wales-based Redrow in February this year, which came under scrutiny from the CMA and was subject to a phase 1 investigation in March. The CMA stopped short of pursuing a phase 2 investigation in August after concluding the combination only has a ‘high combined share’ in just one area of the country, which is Whitchurch, Shropshire. The CMA said the deal did not raise UK-wide competition concerns and, to remove uncertainties, Barratt decided to waive the CMA condition to allow the combination to proceed. In late August, the CMA served an initial enforcement order to both Barratt and Redrow, which enabled the CMA to order the merger to be unwound if its conditions aren’t met. As a result of the CMA’s clearance on Friday, the initial enforcement order issued by the CMA ceases to apply and Barratt will now begin the integration with Redrow. Barratt confirmed that it intends to ‘substantially complete’ the implementation of an integration plan within 18 months of August 21, which was when Barratt acquired the entire issued share capital of Redrow. It expects synergies to be fully realised within three years of the completion on August 21. Chief Executive Officer David Thomas said: ‘Today is a significant milestone for Barratt Redrow, as we come together as one organisation. With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability, able to accelerate the delivery of the homes this country needs. Together, we offer a broader range of homes and price points for our customers who we will continue to put at the heart of everything we do. Our focus now is on integrating our businesses as efficiently and effectively as we can to deliver the expected benefits of the combination. We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensuring that Barratt Redrow is set up to deliver long-term value to all of its stakeholders.’ Shares in Barratt Developments were up 0.4% at 483.37 pence each in London on Friday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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