BDEV bar developments,
It agreed to buy smaller housebuilder Redrow RDW,
For 2.52 billion pounds ($3.17 billion) in an all-stock deal.
Under the agreement, FTSE 250 Redrow shareholders will receive 1.44 new Barratt shares for every share held. The offer value is a 27% premium to Redrow's closing price of 600p on Tuesday.
Upon completion of the deal, Redrow shareholders will own 32.8% of the combined group while Barratt shareholders will own the remainder.
“Barratt’s directors and Redrow’s directors believe that this merger will create an exceptional UK housebuilder in terms of quality, service and sustainability, delivering excellence and stimulating innovation for customers, employees, sub-contractors and the supply chain,” the companies said in a statement. Joint statement.
Write to Ian Walker at ian.walker@wsj.com
