In a landmark move for the UK housing market, Barratt Developments and Redrow have completed their highly anticipated £2.5 billion merger, forming a new giant in the industry: Barratt Redrow. The union, which has been in the works for over a year, received final approval from the UK’s Competition and Markets Authority (CMA), marking the beginning of an exciting new chapter for both companies.
This merger brings together two of the nation’s leading housebuilders, with the new entity expected to deliver around 23,000 homes annually and generate over £7 billion in revenue. Barratt Redrow will now play a pivotal role in addressing the UK’s housing shortage, offering a diverse range of homes at different price points.
The CMA had raised concerns about a potential overlap in local competition, particularly around developments in Whitchurch, Shropshire, and Redrow’s 324-home site in Nantwich, Cheshire. To resolve this, both firms worked closely with the regulator, appointing Savills as an independent agent to oversee the sale of unsold properties at the Nantwich site, ensuring a fair market competition.
David Thomas, CEO of Barratt and now head of the combined entity, described the merger as a “significant milestone,” highlighting the potential to accelerate housing delivery. “Together, we offer a broader range of homes and price points, while maintaining our commitment to quality and customer satisfaction,” he said.
The integration process, expected to take 18 months, will see the two companies work together to streamline operations. Barratt Redrow aims to save £90 million annually through cost efficiencies, though this will result in the reduction of around 10% of jobs across both organisations. Despite these challenges, both firms are working closely with employees to ensure a smooth transition.
With the merger officially approved and the integration process underway, Barratt Redrow is set to make a lasting impact on the UK housing sector. By combining their strengths and expertise, the newly-formed company is well-positioned to shape the future of the housing market and continue to meet the country’s growing demand for homes.
Trading under the name Barratt Redrow is expected to begin soon, with the new company’s shares listed on the London Stock Exchange. The merger has been hailed as a pivotal moment for both companies, laying the foundation for future growth and innovation in UK housing.
Building, Design & Construction Magazine | The Choice of Industry Professionals
