Housebuilder giant Barratt Developments in surprise £2.5 billion offer for Redrow

Britain’s largest housebuilder Barratt Developments has revealed a surprise all-share merger deal for smaller rival Redrow, in a move that values the latter at £2.5 billion. The pair said the agreement, which sees each Redrow shareholder get 1.44 new Barratt shares for each Redrow share, would accelerate “the delivery of the homes this country needs”. The major tie-up was revealed alongside separate updates from both firms that showed how tough market conditions, such as soaring mortgage costs and high interest rates, hurt sales and profits last year.