Barratt, Redrow agree £2.5bn merger

(Sharecast News) - UK housebuilders Barratt and Redrow said they had agreed an all-share merger valuing the latter at £2.5bn.

Under the terms of the deal Redrow investors will receive 1.44 new Barratt shares for their own stock which would leave them with 32.8% of the combined group and Barratt shareholders with the remainder.

The terms also imply a premium of 27.2% to the closing price per Redrow Share of 600p on February 6.

Reporting by Frank Prenesti for Sharecast.com