Housebuilder Barratt is expected to complete its acquisition of rival Redrow later this week, the two companies have announced in a joint statement.

The £2.5bn all-share deal announced in February had come under the scrutiny of the Competition and Market Authority, which launched a Phase 1 investigation in March.

But the CMA stopped short of pursuing a Phase 2 investigation after concluding that the duo has a “high combined share” in just one local area of Whitchurch, Shropshire.

To remove uncertainties, Barratt has “waived the CMA Condition to the Scheme and the parties now intend to complete the combination (“completion”) later this week”.

“This removes uncertainty for the employees, supply chain and wider stakeholder groups of both businesses, and allows us to accelerate the creation of an exceptional UK homebuilder in terms of quality, service and sustainability, which in turn can accelerate the delivery of high-quality, sustainable homes and communities for customers across the UK, addressing the country’s need for homes,” the company added.

As a result, the company said it expected the CMA to impose an initial enforcement order (“IEO”) on the parties, “preventing any action which might prejudice the CMA’s process.”

It added that it now expected the deal to complete within 18 months.

Once completed the merger will create the UK’s largest housebuilding firm.

Barrett’s shareholders will hold approximately 67.2% of the combined group, whilst Redrow’s will account for the remaining 32.8%

Reflecting on the planned merger, Anthony Codling, head of European housing and building materials for investment bank RBC Capital Markets, said: “It is good for Barratt, Redrow and homebuyers in general that Barratt has chosen to push ahead with its proposed merger with Redrow despite the small issue raised by the CMA.

“We view the CMA’s issue as a minor one that can be easily resolved and not an issue big enough to stand in the way of the planned combination of Barratt and Redrow. The sooner the merger is completed the sooner homebuyers can benefit from a larger choice of homes offered for sale by the newly formed combined group.”

The Barratt-Redrow merger would be larger than the Vistry-Countryside partnership, worth around £1.3bn, agreed two years ago. However, two housebuilders that will not be joining forces are Bellway and Crest Nicholson.

Bellway has informed investors it will not continue with its £720m bid for rival Crest Nicholson

The deadline for Bellway to make a firm offer is today.

Property giants set to merge after £2.5bn deal approved by shareholders