The boards of Barratt Developments and Redrow agreed a merger deal in February, a move which would create a mega housebuilder turning over £7.45bn and delivering over 22,600 homes a year.

The CMA had raised concerns that the takeover could affect the price of new homes in the area around Whitchurch, Shropshire, which includes nearby towns such as Nantwich, Ellesmere and Market Drayton.

The watchdog found that both housebuilders currently hold a high combined share of land in the catchment area centred around the Barratt development at Tilstock Road, with the addition of Redrow’s development at Kingsbourne in Nantwich.

Measures put forward by the two companies, which include appointing property agents from Savills as a third party to sell the houses, have now been approved.

A CMA-approved monitor will also oversee undertakings to maintain Redrow’s build quality and service, on the Kingsbourne site in Nantwich.

Barratt has already completed the acquisition of Redrow in August but can now begin the process of integrating the two businesses, a process expected to take 18 months.

David Thomas, CEO of Barratt said: “This is a significant milestone for Barratt Redrow, as we come together as one organisation. 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.

“We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensuring that Barratt Redrow is set up to deliver long term value to all of its stakeholders.”