By Shaina Mishkin

Federal regulators should investigate the proposed merger between Compass and Anywhere Real Estate, Senators Elizabeth Warren and Ron Wyden wrote in a letter to the Department of Justice and Federal Trade Commission circulated on Thursday.

The deal could "raise barriers to entry for smaller firms, and threaten the transparency of real estate listings," the senators wrote, adding that it could "allow the merged company to exert greater control over the real estate market, consumer access, and the homebuying process."

In the letter dated Dec. 16, the senators said the proposed deal "comes at a time when housing affordability has reached crisis levels and access to homebuying for everyday families is at an all-time low." They added that the two regulatory bodies "should thoroughly investigate whether this merger threatens competition and undermines transparence, and block it if it is not consistent with antitrust law."

New York-based Compass announced a deal earlier this year to acquire the New Jersey-based Anywhere Real Estate in an all-stock transaction that would create a company with roughly $10 billion in enterprise value. Anywhere operates and is the franchiser of brands such as Sotheby's International Realty, Century 21, Coldwell Banker, and Corcoran.

A Compass spokesperson directed Barron's to the news release announcing the combination. Anywhere didn't immediately provide comment. The Department of Justice and Federal Trade Commission didn't immediately respond to a request for comment.

The stocks weren't shaken by the news: Compass stock was up about 3.9% in midday trading, while Anywhere shares were up about 4.4% after November inflation data came in softer than expected.

Since the day the deal was announced, Compass stock is up 38% at a recent $10.94. Anywhere stock is trading at $14.88, up 45%, according to Dow Jones Market Data.

The deal is expected to close in the second half of 2026. Should the merger terminate because of a failure to clear certain regulatory hurdles, Compass would pay Anywhere a $350 million termination fee, according to an SEC filing.

Write to Shaina Mishkin at shaina.mishkin@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

December 18, 2025 13:01 ET (18:01 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.