The Competition and Markets Authority (CMA) said it had decided not to refer the deal, announced in February, to an in-depth probe after accepting undertakings offered by the two homebuilders over a potential local competition issue.

In August, the CMA had raised competition concerns over a local area in Whitchurch, Shropshire, that contained one Redrow and four Barratt developments and had fewer than 10 plots remaining to sell.

To address competition concerns, the companies agreed to hire Savills as an independent agent to sell the remaining unsold homes at Redrow's Nantwich development.

Barratt said it intends to complete the implementation of an integration plan within 18 months from the legal completion of the deal.  The company also said synergies from the acquisition are expected to be realised fully within three years following the completion of the deal.  

Barratt CEO, David Thomas, said: ‘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.’

The tie-up is expected to lead to cost savings of at least £90 mln (€107 mln) a year, with a one-off cost of making these savings of about £73 mln (€87 mln). The merged group, to be called Barratt Redrow, is expected to build about 23,000 homes a year and have a turnover of more than £7 bn (€8.4 bn).