- £2.52bn deal at 7.2 per cent premium
- All-share deal will see 67/33 split in ownership of enlarged company
Barratt Developments (BDEV) will buy rival Redrow (RDW) in an all-share takeover to create the UK's largest housebuilder.
The £2.52bn deal, done during a stagnant housing market caused by high interest rates, represents a 7.2 per cent premium to Redrow's closing price on Tuesday of 600p. Barratt shareholders would hold 67.2 per cent of the enlarged group while Redrow's shareholders would 32.8 per cent. Redrow's shares surged 12 per cent as Barratt's sank 8 per cent following the deal announcement. Shareholders will vote on the arrangement at an upcoming meeting.