Barratt Developments PLC and Redrow PLC have announced the waiver of the CMA Condition for their recommended all-share offer for the combination. The United Kingdom's Competition and Markets Authority (CMA) concluded its Phase 1 investigation and found that the Combination does not raise any UK-wide competition issues but had concerns regarding the supply of new build private residential housing in only one of the more than 400 local areas where the two companies overlap. Barratt has waived the CMA Condition to the Scheme, and the parties intend to complete the Combination later this week.
Following Completion, Barratt and Redrow expect the CMA to impose an initial enforcement order (IEO) on the parties, preventing any action which might prejudice the CMA's process. Barratt confirms its intention to begin full integration as soon as practicable and permissible, with the aim to substantially complete the implementation of an integration plan within 18 months of Completion, and to realise synergies fully within three years following Completion.
Strategic plans for the Combined Group include the appointment of Matthew Pratt to the board of the Combined Group as Chief Executive Officer, Redrow, the appointment of Nicky Dulieu and Geeta Nanda to the board of the Combined Group as Non-Executive Directors, and the assumption by Barbara Richmond of her role with the Combined Group as Redrow Chief Financial Officer and Group Integration and Synergies Director to support the integration for a period of not less than 12 months following Completion. The plans also involve changing the name of the Combined Group to 'Barratt Redrow plc' and maintaining Redrow's strong brand position as the premium and distinct component of the Combined Group's brand portfolio, alongside Barratt Homes and David Wilson Homes.
Redrow's directors have confirmed that they intend to remain in their current roles with Redrow following Completion while the parties seek to agree on the proposed undertakings with the CMA and while the IEO remains in place. The Court Sanction Hearing has been scheduled to be held on 20 August 2024, subject to the Scheme receiving the sanction of the Court.