UK watchdog says Barratt-Redrow merger remedies may win nod (updated)
21/08/2024 07:35
(Adds context of CMA probe in paragraph 3)
Aug 21 (Reuters) - The UK competition regulator has
"reasonable grounds to believe" that the remedial measures
offered by homebuilders Barratt and BDEV.L and Redrow RDW.L
may be accepted, paving the way for the completion of their
proposed merger, it said on Wednesday.
Barratt agreed to buy Redrow in early February in a 2.52
billion pounds ($3.28 billion) all-stock deal.
The Competition and Markets Authority (CMA) earlier this
month raised competition concerns over one local area that
contained four Barratt developments and a Redrow development
that has fewer than 10 plots remaining to sell.
Earlier this week, Barratt said a condition by the regulator
for the acquisition was waived to satisfy a legal completion,
but the firms would remain separate until the watchdog clears
the deal.
In a separate statement on Wednesday, Barratt said the
regulator had until Oct. 18 to decide whether to accept the
undertakings or a modified version of that provided by the
companies.
($1 = 0.7680 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu)
((abyjose.koilparambil@thomsonreuters.com))