Shares of two housebuilders set to merge rose today after they informed investors of plans to complete the transaction later this week.
Redrow’s shares climbed 4.4%, while Barratt’s shares increased by 3.2%.
Barratt announced that it is temporarily setting aside concerns raised by the Competition and Markets Authority (CMA) to proceed with the buyout.
Earlier this month, the CMA expressed concerns that the acquisition might lead to higher prices and lower-quality homes in a specific area—Whitchurch, Shropshire—which we previously reported on.
However, the CMA did not identify any concerns regarding the merger on a national level.
On Monday, Barratt emphasized that Whitchurch represents just one of over 400 areas where the two companies’ operations overlap and assured that both firms are actively working on solutions to address these localized issues.
Barratt also stated that completing the acquisition, following a court hearing scheduled for Wednesday, would eliminate uncertainty for staff, the supply chain, and other stakeholders of both companies.
The two firms anticipate fully merging within 18 months of the acquisition, with efficiencies and cost savings expected to materialize after three years.
