Barratt Developments and Redrow Complete £2.5 Billion Merger

Barratt Developments and Redrow have today announced the successful completion of their £2.5 billion merger, following final approval from the UK’s Competition and Markets Authority (CMA). This strategic union creates a new leading force in the UK housing market, with the combined entity to be known as Barratt Redrow.

The merger, which has been in discussions for over a year, was granted the green light by the CMA after both companies successfully addressed concerns around local competition. The CMA’s primary focus was on developments in Whitchurch, Shropshire, and Nantwich, Cheshire, where both Barratt and Redrow held significant interests.

To ensure compliance and maintain competition in the market, Barratt and Redrow took proactive steps, including appointing Savills as an independent third-party agent to oversee the sale of unsold properties at Redrow’s Nantwich site and engaging a CMA-approved monitor to supervise the quality of homes delivered in the affected regions.

The newly formed Barratt Redrow is projected to become a major player in the UK housing sector, with the capacity to construct 23,000 homes annually, helping to meet the UK’s pressing housing needs, and generate revenue exceeding £7 billion annually.

The integration process between Barratt and Redrow is expected to take approximately 18 months. As part of this consolidation, Barratt Redrow aims to achieve annual cost efficiencies of £90 million.

The restructuring process will come at an estimated cost of £73 million, and approximately 10% of jobs across both businesses are expected to be cut due to role redundancies. Both companies are working closely with employees to ensure smooth transitions where necessary.

With Barratt Redrow now established as a major force in the UK housing sector, the company will focus on increasing its contribution to addressing the country’s housing crisis. By combining the resources and expertise of two of the UK’s leading developers, Barratt Redrow is set to play a crucial role in shaping the future of the housing market.