Business
COMBINATION UPDATE - CMA
COMBINATION UPDATE - CMA.
About this update from Barratt Redrow Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\nFOR IMMEDIATE RELEASE\n8 August 2024\nRECOMMENDED ALL-SHARE OFFER FOR THE COMBINATION\nof\nBARRATT DEVELOPMENTS PLC (\"Barratt\")\nand\nREDROW PLC (\"Redrow\")\nto be effected by means of a scheme of arrangement under\nPart 26 of the Companies Act 2006\nCOMBINATION UPDATE - CMA\nOn 7 February 2024, the boards of Barratt and Redrow announced that they had reached agreement on the terms of a recommended all-share offer for the combination of Barratt and Redrow, pursuant to which Barratt will acquire the entire issued and to be issued ordinary share capital of Redrow (the \"Combination\"). The Combination is being implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the \"Scheme\"), with full terms and conditions of the Combination set out in the scheme document which was published on 19 April 2024 (the \"Scheme Document\").\nOn 15 May 2024, Redrow announced that at the Court Meeting to consider the Scheme and the General Meeting to consider the Special Resolution relating to the Combination, all resolutions were approved by the requisite majorities. On 15 May 2024, Barratt also announced that at the Barratt General Meeting to consider the Barratt Resolution relating to the Combination, the resolution was approved by the requisite majority.\nOn 13 June 2024, the United Kingdom's Competition and Markets Authority (the \"CMA\") commenced a Phase 1 investigation in respect of the Combination. Today the CMA has concluded the main part of that investigation which found that overall, the merger does not raise competition issues except for 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 under the CMA's chosen methodology to assess the local effects of the Combination.\nPursuant to the Enterprise Act 2002, the parties have until 15 August 2024 to offer undertakings to the CMA which would address its limited concerns and avoid the need for a reference to a full Phase 2 investigation. Barratt and Redrow intend to engage with the CMA with the objective of agreein...