Barratt shareholders voted 99.82% in favour of the Barratt Redrow merger, with Redrow’s shareholders approving by 99.2%
First announced in February, the merger between Barratt and Redrow would see Barratt shareholders taking 67% of the combined group and Redrow shareholders the other 33%.
The deal prices Redrow at £2,524m
The combined business would join Barratt, Wilson Homes and Redrow as Barratt Redrow plc, with an estimated value of £7.45bn and delivery of over 20,000 homes a year.
The deal is expected to complete later this year. The Barratt Redrow merger must still be approved by the Competition and Markets Authority, who’s investigation of the deal is ongoing.
In mid-March, when the investigation was first announced, the CMA said that the move “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”
Barratt has estimated “cost-saving synergies” of up to £90m.
Plans for the Barratt Redrow merger estimate a 10% workforce reduction
Barratt currently employs around 6000 staff, whereas Redrow’s workforce numbers roughly 2,300. A 10% of the total figure would see about 800 jobs lost.
The firms said: “This reduction is intended to come from employees and management, overlapping central and support functions and divisions affected by the rationalisation programme as a result of the combination.
“Following completion, Barratt intends to retain the best talent of Barratt and Redrow.”
