Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Barratt to buy Redrow in a £2.5Bn deal

by February 7, 2024
February 7, 2024
Barratt to buy Redrow in a £2.5Bn deal

Barratt Developments has sealed a monumental £2.5 billion deal to acquire Redrow, propelling itself to the forefront as the nation’s largest housebuilder.

Pending shareholder approval, this merger will fuse the capabilities of both entities, enabling them to construct nearly 23,000 homes across the UK and generate a turnover of £7.5 billion, based on last year’s figures.

Amidst challenges like heightened mortgage rates dampening home sales over the past 18 months, both firms anticipate that this collaboration will fortify their resilience throughout market cycles.

Forecasts suggest that within three years of integration, synergies could slash £90 million from their combined annual costs. Moreover, Redrow shareholders can anticipate a substantial increase in dividend payouts compared to previous years.

The amalgamation aims to leverage the strengths of three distinct brands—Barratt Homes, David Wilson Homes, and Redrow—under one umbrella. Notably, Redrow specializes in premium housing, particularly larger family residences.

Strategically, Barratt envisions integrating premium offerings into selected sites, while Redrow’s portfolio offers opportunities for Barratt or David Wilson Homes.

This all-paper transaction values Redrow at approximately £2.5 billion—a notable 27 per cent premium over its recent stock market valuation. Redrow shareholders stand to receive 1.44 new Barratt shares for each Redrow share they hold.

In early trading, Redrow shares surged by 13.6 per cent, while Barratt shares initially dipped by 5.4 per cent, reflecting market reactions to the deal.

Upon completion, the combined entity, Barratt Redrow, will predominantly be owned by Barratt’s shareholders, maintaining a two-thirds stake, with Redrow investors retaining the remainder.

Leadership roles within the new group will see David Thomas continuing as Chief Executive, with Caroline Silver as Chairperson and Matthew Pratt, Redrow’s current CEO, joining the board and overseeing Redrow’s operations.

David Thomas expressed enthusiasm, calling the merger an “exciting opportunity” to create an exceptional homebuilder delivering high-quality, sustainable homes.

Similarly, Matthew Pratt highlighted the potential to offer a wider range of energy-efficient homes, enhancing their value proposition to customers.

Steve Morgan, Redrow’s founder, endorsed the deal, expressing confidence in the combined entity’s ability to deliver much-needed homes across the UK.

The announcement coincided with Barratt’s release of interim results, reflecting a decline in pre-tax profit and revenue amidst challenging market conditions.

Nevertheless, with the acquisition of Redrow on the horizon, Barratt aims to leverage synergies and strengths to navigate market challenges and continue providing quality homes to customers across the UK.

Read more:
Barratt to buy Redrow in a £2.5Bn deal

0
FacebookTwitterGoogle +Pinterest
previous post
‘Tell Sid’ NatWest sale to start in June
next post
Israel aid bill sinks in House with 166 Democrats, 14 Republicans against

You may also like

Nigel Farage to Stand as MP in Clacton,...

June 3, 2024

UK hospitality warns of ‘tidal wave’ of closures...

October 25, 2022

Fraudulent Bounce Back loan application prosecutions – what...

October 25, 2022

Soft2Bet: Pioneering Innovation and Expansion in the iGaming...

May 17, 2025

Bahrain’s Mumtalakat Holding Company Assumes Full Control of...

March 22, 2024

What Are Hydroponic Systems and How Can They...

December 22, 2022

Apple Faces Lawsuit by US Over Smartphone Market...

March 22, 2024

Why Online Courses Are the Future of Business...

December 9, 2022

PM to hold cabinet crisis talks after rail...

December 6, 2022

Record Christmas for Aldi and Lidl as shoppers...

January 2, 2024

Nigel Farage to Stand as MP in Clacton,...

June 3, 2024

UK hospitality warns of ‘tidal wave’ of closures...

October 25, 2022

Fraudulent Bounce Back loan application prosecutions – what...

October 25, 2022

Soft2Bet: Pioneering Innovation and Expansion in the iGaming...

May 17, 2025

Bahrain’s Mumtalakat Holding Company Assumes Full Control of...

March 22, 2024

What Are Hydroponic Systems and How Can They...

December 22, 2022

Apple Faces Lawsuit by US Over Smartphone Market...

March 22, 2024

Why Online Courses Are the Future of Business...

December 9, 2022

PM to hold cabinet crisis talks after rail...

December 6, 2022

Record Christmas for Aldi and Lidl as shoppers...

January 2, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump talks with Putin, spars with South African leader, threatens EU tariff hike in 18th week in office

      May 24, 2025
    • 4 Best Assignment Writing Services Reviewed by University Students

      May 24, 2025
    • DAVID MARCUS: Tax-free overtime could be midterm magic for GOP

      May 24, 2025
    • SCOOP: House Republicans request ban on federally funded ‘transgender animal’ experiments in 2026 budget

      May 24, 2025
    • WATCH: GOP senators rail against staggering $4.7 trillion in untraceable Treasury payments

      May 24, 2025
    • Trump unleashes US nuclear renaissance with bold executive orders

      May 24, 2025

    Categories

    • Business (8,038)
    • Investing (1,986)
    • Politics (15,367)
    • Stocks (3,106)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved