CMA Clearance of Combination with Redrow plc
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION
FOR IMMEDIATE RELEASE
4 October 2024
BARRATT DEVELOPMENTS PLC ("Barratt")
CMA Clearance of Combination with Redrow plc ("Redrow")
On 7 February 2024, the boards of Barratt and Redrow announced the terms of a recommended all-share offer for the combination of Barratt and Redrow, pursuant to which Barratt has acquired the entire issued and to be issued ordinary share capital of Redrow (the "Combination").
CMA clearance
Barratt is pleased to announce that, following a consultation on undertakings in lieu of reference to an in-depth phase 2 investigation offered by the parties (the "Undertakings"), the United Kingdom's Competition and Markets Authority (the "CMA") has today published its acceptance of the Undertakings and will not be referring the acquisition of Redrow to a phase 2 investigation. This represents final determination of the CMA's investigation ("CMA Clearance").
The Undertakings approved by the CMA and the full text of the CMA Clearance decision are available on the CMA case page. The full text of the CMA Clearance decision will be published in due course.
Next steps
Following today's receipt of the CMA Clearance, the initial enforcement order issued by the CMA in connection with the Combination ceases to apply. As such, Barratt will now commence the integration of the businesses of Barratt and Redrow.
Barratt confirms that its intention remains to substantially complete the implementation of an integration plan within 18 months of completion of the Combination on 21 August 2024 ("Completion"), with synergies expected to be realised fully within three years following Completion.
David Thomas, CEO of Barratt said: "Today is a significant milestone for Barratt Redrow, as we come together as one organisation. With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability, able to accelerate the delivery of the homes this country needs. Together, we offer a broader range of homes and price points for our customers who we will continue to put at the heart of everything we do. Our focus now is on integrating our businesses as efficiently and effectively as we can to deliver the expected benefits of the Combination. We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensuring that Barratt Redrow is set up to deliver long term value to all of its stakeholders."
Other
Full details of the Combination are available on Barratt's website at www.barrattdevelopments.co.uk.
Capitalised terms used but not defined in this announcement have the meanings given to them in the scheme document published on 19 April 2024 in relation to the Combination.
Enquiries:
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Barratt |
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Mike Scott, Chief Financial Officer John Messenger, Group Investor Relations Director
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+44 (0) 20 7404 5959
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UBS (Lead Financial Adviser, Sole Corporate Broker and Sponsor to Barratt) |
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Jonathan Retter Joe Hannon Anisah Mahomed
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+44 (0) 20 7567 8000 |
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Morgan Stanley (Financial Adviser to Barratt) |
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Shirav Patel Nick White
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+44 (0) 20 7425 8000 |
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Brunswick Group LLP (Public Relations Adviser to Barratt) |
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Jonathan Glass Rosie Oddy Peter Hesse |
+44 (0) 20 7457 2045 |
Linklaters LLP is retained as legal adviser to Barratt.
Important notices
UBS AG London Branch ("UBS") is authorised and regulated by the Financial Market Supervisory Authority in Switzerland. It is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority in the United Kingdom. UBS is acting exclusively as sole corporate broker, lead financial adviser and sole sponsor to Barratt and no one else in connection with the Combination. In connection with such matters, UBS will not regard any other person as its client, nor will it be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the Combination, the contents of this announcement or any other matter referred to herein.
Morgan Stanley & Co. International plc ("Morgan Stanley"), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK is acting as financial adviser exclusively for Barratt and no one else in connection with the Combination. In connection with the Combination, Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to any person other than Barratt for providing the protections afforded to clients of Morgan Stanley or for providing advice in connection with any matter referred to herein.
Publication on Website
A copy of this announcement will be made available, subject to certain restrictions relating to persons resident in restricted jurisdictions, on Barratt's website at www.barrattdevelopments.co.uk. For the avoidance of doubt, the contents of the website are not incorporated into and do not form part of this announcement.
Requesting hard copies
Barratt Shareholders may, subject to applicable securities law, request a hard copy of this announcement by contacting Barratt's Registrars, Equiniti Group, between 8.30 a.m. and 5.30 p.m. Monday to Friday (except public holidays in England and Wales) on +44 371 384 2657 or by submitting a request in writing to Equiniti Group, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA.
General
If you are in any doubt as to the contents of this announcement, you should consult your stockbroker, bank manager, solicitor, accountant or other independent professional adviser who, if you are taking advice in the United Kingdom, is authorised pursuant to the Financial Services and Markets Act 2000 (as amended) or, if you are in a territory outside the United Kingdom, is an appropriately authorised independent financial adviser.
Barratt Developments plc's legal entity identifier is 2138006R85VEOF5YNK29.
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