The positive update comes one day after the competition watchdog announced it would be servicing an initial enforcement order against Barratt Developments.

This was due to reports that the housebuilders were working to complete the merger despite earlier concerns.

Earlier in August the regulator concluded a Phase 1 investigation into the planned merger, finding that the merger “may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.”

Since then, the regulator has provided a more positive update.

Today (21st August), the CMA has published an update that there are “reasonable grounds” for believing that undertakings from the housebuilders might be accepted by the competition watchdog.

In response, a joint stock market announcement was issued by both housebuilders.

It read: “Today the CMA has announced that it considers there are reasonable grounds to believe that the undertakings offered by the parties, or a modified version of them, might be accepted by the CMA to remedy the issues it had identified, thereby precluding the need for a Phase 2 investigation.

“In line with standard procedure, the CMA has until 18th October 2024 to decide whether to accept the undertakings, with the possibility to extend this timeframe to 13 December 2024 if it considers there are special reasons for doing so.”

This statement also portrayed a different perspective of the CMA’s findings from earlier in August.

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In its RNS, it was commented upon that the regulator found “that the Combination does not raise any UK-wide competition issues but that it had concerns regarding the supply of new build private residential housing in only one of the more than 400 local areas where the two companies overlap under the CMA's chosen methodology to assess the local effects of the Combination, and where there were fewer than 10 plots remaining to sell at the time of the CMA's review.”

The RNS states both housebuilders have since worked with the CMA to address concerns and avoid further investigation.

It added that the last day of dealings in, and for the registration and transfer of, Redrow Shares, will be today.

No transfers of Redrow Shares will be registered after 6pm today.

“This would be a huge relief to Barratt’s management, who no doubt want to wrap up the deal as quickly as possible and take advantage of the opportunities created by the new UK government’s pro-housing policies,” commented Dan Coatsworth, investment analyst at AJ Bell.

“The takeover would give Barratt greater buying power for raw materials just at a time when planning laws are expected to be relaxed as part of Labour’s push to improve the country’s housing situation. After several years of inflationary pressures, any savings made by Barratt on the materials used to build homes would be a major benefit for the group.”

Development Finance Today has contacted Barratt for extra comment. Redrow declined to comment.