The competition watchdog has launched an investigation into Barratt’s £2.5bn deal to buy rival Redrow.
An agreement between two of Britain’s biggest housebuilders was struck last month, as the pair said the combined company will have capacity to build 22,000 homes a year.
However, the Competition and Markets Authority (CMA) has revealed it is investigating the takeover over fears it could result “in a substantial lessening of competition”.
Both housebuilders are now facing two separate inquiries by the regulator after the CMA last month opened an investigation into suspected illegal information sharing between developers.
Regulators said possible collusion in the industry could have pushed up prices, with the investigation looking into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry.
The CMA confirmed on Friday that it had issued an invitation for evidence on Barratt’s proposed takeover of Redrow.
Interested parties will have until April 2 to submit comments before the regulator starts the next phase of its inquiry.
