Barratt Developments to buy Redrow plc

Barratt Developments has announced plans to merge with Redrow plc in a £2.5bn deal which will see the formation of a new business - Barratt Redrow.

The two companies have reach an agreement which has been supported by both boards and is expected to create the UK's biggest housebuilder with a turnover above £7bn.

In a statement David Thomas, Chief Executive of Barratt Developments PLC said: "We believe that the combination will create an exceptional UK housebuilder in terms of quality, service and sustainability, delivering excellence and driving innovation for customers, employees, sub-contractors and the supply chain.

"The combination will bring together two companies with highly complementary geographic footprints and three highly respected brands – Barratt Homes, David Wilson Homes and Redrow – with which to accelerate the delivery of much-needed housing across the UK and provide the opportunity for shareholders to participate in future value creation in the combined group."