THE competition watchdog is set to sink its teeth into the proposed £2.5billion takeover of housebuilder Redrow by rival Barratt.
The deal, which was announced last month, would cement Barratt’s status as the UK’s biggest housebuilder.
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The firms would develop a combined 23,000 homes a year and bring in sales of more than £7billion.
The probe by the Competition and Markets Authority comes weeks after it announced a separate investigation into eight firms — including Barratt and Redrow.
That was over claims they were sharing commercially sensitive information that could impact sites of housing and property prices.
The CMA’s inspection of the deal between Barratt and Redrow will focus on whether it creates a “substantial lessening of competition” for consumers in future.
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The regulator said yesterday that it was seeking information before launching an official investigation.
A Barratt spokesman 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.”
Interested parties have until April 2 to submit views.
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