Barratt Developments PLC and Redrow PLC have been working on a recommended all-share offer for a combination, with Barratt acquiring the entire issued and to be issued ordinary share capital of Redrow. The process is being implemented through a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. Both companies have received approval for the combination at their respective general meetings.
The United Kingdom's Competition and Markets Authority (CMA) initiated a Phase 1 investigation into the combination, finding that it does not raise competition issues except for concerns regarding the supply of new build private residential housing in one specific local area. Barratt and Redrow have until 15 August 2024 to offer undertakings to the CMA to address these concerns and avoid a full Phase 2 investigation. The companies have identified undertakings to address the competition concern in the specific local area highlighted by the CMA.
David Thomas, Group Chief Executive of Barratt, expressed confidence in the combination, stating, "We remain confident that the combination of Barratt and Redrow will be approved and that it is in the best interests of our customers and wider stakeholders." Matthew Pratt, Group Chief Executive of Redrow, also expressed optimism about the future of the combined entity, emphasizing the shared strengths of both companies.
Barratt and Redrow are collaborating to ensure the combination becomes effective in the second half of the year, in line with the timeline set out in the Scheme Document. The companies are committed to further announcements as necessary. Enquiries and advisory information for both Barratt and Redrow are provided in the announcement.
In conclusion, the update highlights the progress of the recommended all-share offer for the combination of Barratt and Redrow, the CMA's Phase 1 investigation findings, and the companies' intention to address the competition concerns raised by the CMA. Both Barratt and Redrow express confidence in the combination and are working towards its effective implementation in the second half of the year.