The CMA discovered that Barratt's acquisition of Redrow Homes for £2.5 billion could harm competition in the local area near a Barratt development in Whitchurch, impacting towns like Nantwich and Ellesmere. The concern stemmed from the high combined share of land held by both companies in the catchment area, which may result in increased prices and lower quality homes for buyers.

Although the deal did not raise nationwide competition worries, the CMA remains vigilant about potential consolidation in the UK housebuilding sector. Barratt and Redrow now have the chance to address the CMA's concerns in the local area to prevent the deal from undergoing a Phase 2 review.

The companies must propose solutions to mitigate competition issues around the Tilstock Road development by August 15, 2024. Failure to do so could escalate the CMA's investigation. The CMA utilized insights from its recent housebuilding market study in addition to direct information from Barratt and Redrow for its decision.