The proposed merger would create a powerhouse in the house building industry, boasting a turnover of £7.45 billion annually and an impressive delivery of over 22,600 homes per year, based on their historical performance.Construction Journal.
However, the completion of the deal hinges on approval from the UK competition watchdog, which has initiated a preliminary investigation to ascertain whether the consolidation would result in a significant reduction of competition in any particular market or markets.
According to the terms of the agreement, Redrow shareholders would retain a 33% stake in the newly formed entity, while Barratt shareholders would own the majority, holding 67%.
Barratt emphasized that the merger presents an opportunity for substantial cost savings, estimating £90 million in synergies, and offers the potential to streamline the supply chain.
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