Barratt to buy Redrow in £2.5 billion deal

Barratt has agreed to buy Redrow in a deal valued at around £2.52 billion, creating by far Britain’s biggest housebuilder to be named Barratt Redrow.

The deal is at a 27% premium to Redrow’s share price with each Redrow shareholder receiving 1.4 Barratt shares. Following the deal Redrow shareholders will hold approximately 32.8% of the combined group and Barratt shareholders 67.2%. Barratt says the deal is expected to achieve cost synergies of at least £90 million.

The recent Housing Market Intelligence Report shows that the combined housebuilder, looking at recent years, could build more than 22,000 homes a year on a turnover of £7.4 billion.

The deal has been welcomed by Redrow founder Steve Morgan saying it would create a “stand out housebuilder”.

Barratt ceo David Thomas will become group ceo of Barratt Redrow, while Redrow ceo Matthew Pratt will join the new combined board as ceo of Redrow and group executive director.

Thomas said: “We have great respect for Redrow, its overall strategy, its leadership and employees, and its high-quality homes and communities. This is an exciting opportunity to bring together two highly complementary companies, creating an exceptional homebuilder in terms of quality, service and sustainability, able …