March 15 Reuters British competition regulator said on Friday it is looking into homebuilder Barratt39;s 2.52billionpound 3.21 billion allstock deal to buy smaller rival Redrow.

The Competition and Markets Authority CMA, which has not yet launched a formal investigation, is seeking initial views on the impact that the deal could have on competition in the UK.

Barratt agreed to buy Redrow in early February to capitalise on a fledgling recovery in the housing market and cement its position as one of the largest homebuilders in Britain.

Britain39;s house building market had struggled with weak demand in 2023, hammering profits for homebuilders as demand took a hit from high borrowing costs. But there have been some signs of stability at the start of this year.

The sector had seen some consolidation in the past couple of years, including Vistry39;s 1.25billionpound purchase of Countryside in 2022.

The CMA39;s invitation to comment, which is a part of its information gathering process before it decides to launch an investigation, closes on April 2.

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Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio D39;Souza and Sherry JacobPhillips

Source Reuters