Barratt and Redrow £2.5bn merger 'to accelerate delivery of homes this country needs'

Housebuilder Barratt Developments has agreed a £2.5bn deal to buy rival Redrow, claiming the combined company would "accelerate the delivery of the homes this country needs".

The terms of the all-share combination, being unanimously recommended by Redrow's board, represents a premium of approximately 27.2% to Redrow investors, the statement said.

The valuation was based on the closing price for Redrow shares on Tuesday.

Each Redrow shareholder will get 1.44 new Barratt shares for each Redrow share.

The deal, which is also subject to regulatory approval, will result in Redrow shareholders owning almost a third of the new company which is to be called Barratt Redrow.

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