CMA accepts undertakings Barratt/ Redrow merger
The Competition and Markets Authority (CMA) has accepted undertakings
in lieu of referring the completed acquisition by Barratt Developments plc of
Redrow plc for a Phase 2 merger investigation.
In its Phase 1 investigation, the CMA found that the merger
gives rise to a realistic prospect of a substantial lessening of competition as
a result of horizontal unilateral effects in the supply of new-build private
residential housing. The effects were confined to one local area centred around
the Barratt development at Tilstock Road, Whitchurch.
The CMA consulted on commitments relating to Redrow's entire
overlapping area in the Kingsbourne, Nantwich site that has planning consent
for the development of 324 houses.
Under the final undertakings, the parties have appointed an
independent third-party agent, Savills, to manage the sale of the remaining
unsold houses and houses where the sale has not been legally completed.
The undertakings require a monitoring trustee and an
independent professional quantity surveyor (approved by the CMA) will be
appointed.
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