- "Undemanding" offer could invite counteroffers
- FTSE 350 housebuilder margins don't correlate with scale
Last week, two UK housebuilding giants surprised the market after they revealed plans for a £2.5bn merger. Barratt Developments' (BDEV) takeover of Redrow (RDW) could capitalise on the eventual recovery in the UK housing market as interest rates fall and deliver an attractive return for shareholders.
Not everyone is bullish on the deal, though. Some question the ‘bigger is better’ mentality or whether the government’s competition watchdog will allow it.