Shareholders approve Barratt Redrow merger

Barratt and Redrow’s shareholders have overwhelmingly approved the anticipated merger of the two large housebuilders.

At meetings held today (May 15) on the deal, which will see volume housebuilder Barratt buy Redrow for around £2.52 billion, more than 99% of both companies’ shares voted for the merger, announced in February.

If the transaction proceeds, the recent Housing Market Intelligence report shows that it could create Britain’s biggest housebuilder by far, potentially delivering more than 22,000 homes a year on a turnover of £7.4 billion, and to be renamed Barratt Redrow.

Under the proposed deal, Redrow shareholders will hold approximately 32.8% of the combined group and Barratt shareholders 67.2%. According to Barratt, the merger is expected to achieve cost synergies of at least £90 million.

The news of shareholder approval follows the Competition and Market Authority’s decision to investigate the intended move which may, it said, “result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services” under the Enterprise Act 2002.

CMA gave a deadline of April 2 for written representations about any competition issues arising from the Barratt/Redrow deal.

The CMA is also investigating …