The merger between Barratt Developments and Redrow has been given the green light after shareholders overwhelmingly supported the £2.5 billion transaction.
An impressive 99.93% of Redrow’s shareholders were in favour of uniting with Barratt, and 99.82% of Barratt’s shareholders agreed to the deal.
This merger was initially unveiled in February, with Barratt set to acquire their competitor for £2.5 billion, a move that will solidify their market presence and result in a combined entity worth over £7 billion, to be named Barratt Redrow.
The offer price for Redrow, endorsed by its board, was marked at a 27.2% premium over the share price recorded on February 6th.
Barratt indicated that an agreement had been reached with Redrow on an all-share offer, which entails Barratt taking over the entirety of Redrow’s issued and future share capital.
On the day of the vote, Redrow shareholders at both the court meeting and general meeting approved the merger in accordance with Barratt’s statement.
In March 2024, the Competition and Markets Authority (CMA) started scrutinizing the merger plans, releasing a preliminary call for comments to gauge the deal’s potential impact on UK market competition.
