Oct 4 (Reuters) - Britain's competition regulator said

on Friday it has cleared Barratt's 2.52 billion pound

($3.32 billion) all-stock acquisition of smaller rival Redrow ( RDWWF ),

after accepting the undertakings offered by the two

homebuilders.

The Competition and Markets Authority said it has decided

not to refer the deal, announced in February this year, to an

in-depth Phase 2 probe.

In August, the regulator had raised competition concerns

over a local area that contained one Redrow ( RDWWF ) and four Barratt

developments and had fewer than 10 plots remaining to sell.

Barratt said in a separate statement it intends to

"substantially complete" the implementation of an integration

plan within 18 months from the legal completion of the deal.

The FTSE 100 company also said synergies from the

acquisition are expected to be realised fully within three years

following the completion of the deal.

($1 = 0.7594 pounds)