Barratt Developments and Redrow shareholders yesterday approved plans for their £2.5bn merger.
Redrow saw 99.93% of its shareholders vote in favour of the merger, while 99.82% of Barratt’s shareholders voted in favour.
The deal was announced in February, when Barratt agreed a £2.5bn bid to purchase its rival in a deal that would extend Barratt’s position and create a £7bn-plus combined business called Barratt Redrow.
The price for Redrow, which was recommended by its board, represents a premium of 27.2% to Redrow’s closing share price on 6 February.
Barratt said: “The boards of Barratt and Redrow announced that they had reached an agreement on the terms of a recommended all-share offer for the combination of Barratt and Redrow, pursuant to which Barratt will acquire the entire issued and to-be-issued ordinary share capital of Redrow.
“Barratt is pleased to note that the combination was also approved by the requisite majorities of the shareholders of Redrow at the Redrow court meeting and the Redrow general meeting held earlier today.”
In March 2024, the Competition and Markets Authority (CMA) launched an investigation into the takeover plans. The CMA said it was issuing a “preliminary ‘invitation to comment’ to allow interested parties to submit to the CMA any initial views on the impact that the transaction could have on competition in the UK”.
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