Barratt said in a statement that the deal would position it to develop present strengths in the housebuilding, social housing and commercial property development, and deliver benefits from opportunities emerging in the market.
“This is an excellent strategic fit for Barratt, which will create a sector leader right across the market,” said Barratt chairman Charles Toner.
Per share, Barratt is paying £9.50 in cash and £1.06 in new Barratt shares in the new company, which will give a 70/30 ownership split in favour of Barratt shareholders. The Barratt board said it believes the deal will bring £45m in savings in the second financial year.
