The Competition and Markets Authority has opened an investigation into the £2.5bn acquisition of Redrow by rival Barratt.

The deal was announced last month to create a mega house builder turning over £7.45bn and delivering over 22,600 homes a year, based on past performance.

CMA watchdogs are investigating if the move “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

It added: “The CMA is issuing this preliminary ‘invitation to comment’ to allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the UK. This invitation to comment is the first part of the CMA’s information-gathering process, in advance of the CMA’s formal investigation starting.”

Subcontractors and suppliers with any observations on the merger can email the CMA by April 2 here Barratt.Redrow@cma.gov.uk

The CMA already has another investigation ongoing into suspected breaches of competition law by the big eight house builders including Barratt and Redrow.