LONDON (dpa-AFX) - UK's competition regulator has cleared the 2.5 billion pounds merger of Residential property developer Barratt Developments plc (BDEV.L) with rival Redrow plc after accepting the undertakings offered by the companies.
The Competition Market Authority or CMA, which has been investigating the merger, now said it has accepted undertakings in lieu of reference for the completed merger between Barratt and Redrow. The agency noted that the merger will not be referred for a phase 2 investigation.
It was in February that Barratt said it has agreed to acquire Redrow in a 2.5 billion pounds transaction, to be paid in stock. The acquisition price was a premium of 27.2 percent over the closing price of Redrow shares as on February 6. Upon closing the deal, nearly 67.2 per cent of the combined company would be owned by Barratt shareholders.
Following this, CMA in June initiated the probe of the merger, and in August, it had raised competition concerns over one local area centred around the Barratt development at Tilstock Road, Whitchurch, which includes Redrow's development in Kingsbourne, Nantwich.
CMA noted that on August 21, Barratt Developments acquired Redrow.
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