The UK competition watchdog has opened an investigation into the high-value merger between British housebuilders Barratt Developments PLC (LSE:BDEV) and Redrow PLC (LSE:RDW).
Barratt struck a deal in February to buy Redrow for £2.5 billion.
Both firms described the deal as a “uniquely compelling opportunity” to “create an exceptional UK homebuilder” at the time.
But the CMA is looking into whether the merger may result in a “substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
The CMA has opened a window to comment until 2 April.