A planned £2.5billion merger between British housebuilders Barratt Developments and Redrow Plc looks set to go-ahead today.

In a market update this morning, Barratt confirmed the deal to combine the businesses will become effective from 6pm today, despite concerns from the competition regulator.

The Competition and Markets Authority (CMA) has been investigating the deal and earlier this month expressed worries that the acquisition could lead to higher prices and lower-quality homes in the Whitchurch region in Shropshire. Both firms have developments in the area.

But Barratt - which has major developments across Aberdeen and Aberdeenshire - said it was temporarily putting aside the concerns because Whitchurch was "only one of the more than 400 local areas where the two companies overlap".

The CMA has not raised concerns over the merger at a national level, and two firms will officially remain separate until the watchdog gives its final approval.

The companies expect to have fully merged within 18 months of the acquisition.

Around 10% of jobs across the combined business are expected to be lost as a result of the deal, which will help save bosses at least £90million a year.

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