Thursday May 16, 2024 Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.

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

The combined business would create a mega house builder turning over £7.45bn and delivering over 22,600 homes a year, based on past performance.

The deal remains subject to clearance by the UK competition watchdog which has launched a preliminary investigation into whether the formation of would see a substantial lessening of competition within any market or markets.

Under the proposed deal, Redrow shareholders will hold 33% of the combined group and Barratt shareholders 67%.

 Barratt said the deal would allow for £90m in cost-saving synergies and offered opportunities to consolidate the supply chain.

Combined the business, which retains the three brands – Barratt, Wilson Homes and Redrow – would have net cash of £874m.