Housebuilder Barratt is on track to complete its acquisition of rival Redrow later this week, according to a joint statement from both companies. The £2.5 billion all-share deal, initially announced in February, faced scrutiny from the Competition and Markets Authority (CMA), which conducted a Phase 1 investigation starting in March.

The CMA’s review focussed on the high combined market share of Barratt and Redrow in Whitchurch, Shropshire. However, the authority decided against a more detailed Phase 2 investigation, leading Barratt to waive the CMA condition to the scheme. The merger is now expected to conclude within 18 months.

The combined entity will become the largest housebuilding firm in the UK, with Barratt’s shareholders holding approximately 67.2% and Redrow’s shareholders owning the remaining 32.8%. The merger aims to enhance the creation of high-quality, sustainable homes and communities across the UK, aligning with the industry’s focus on addressing housing needs.

Anthony Codling, Head of European Housing and Building Materials at RBC Capital Markets, commented: “It is positive for Barratt, Redrow, and homebuyers that Barratt is proceeding with the merger despite minor concerns raised by the CMA. The CMA’s concerns are manageable and unlikely to prevent the merger, which will provide homebuyers with a broader range of housing options.”

This merger, larger than the £1.3 billion Vistry-Countryside partnership formed two years ago, represents a major shift in the UK’s housing sector. Notably, Bellway has decided against continuing with its £720 million bid for Crest Nicholson, with the deadline for a firm offer ending today.

The Barratt-Redrow merger might be a key discussion point at upcoming real estate networking events and property construction conferences, as industry professionals examine the impact of such large-scale consolidations on the housing market. To register your place at the UK’s biggest real estate and property festival, visit https://www.ukreiif.com/ukreiif-2025/