Job losses as housebuilder Barratt Developments snaps up smaller rival Redrow in £2.5billion deal

Job losses as housebuilder Barratt Developments snaps up smaller rival Redrow in £2.5billion deal

HOUSEBUILDER Barratt Developments is snapping up its smaller rival Redrow in a £2.5billion deal.

But the tie-up won’t be good news for all of the two companies’ staff.

Job losses as housebuilder Barratt Developments snaps up smaller rival Redrow in £2.5billion deal
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Between them the two firms have 92,345 homes planned and the capacity to build more than 22,000 per year[/caption]

Around 900 employees — ten per cent of the workforce — are expected to be axed at the combined business, which will be known as Barratt Redrow.

Building site workers will be spared pain but bosses said they will cut overlapping roles and consolidate office space.

That could mean shutting nine of Barratt and Redrow’s 41 offices.

Barratt is already the UK’s largest housebuilder and the link-up will increase its dominance in the sector.

Bosses said the deal would accelerate “the delivery of the homes this country needs”.

Between them the two firms have 92,345 homes planned and the capacity to build more than 22,000 per year.

Under the deal, Redrow shareholders will be given 1.44 new Barratt shares for every share they own.

That news sent shares in Redrow soaring 16 per cent, while Barratt shares fell five per cent.

But shareholders should be rewarded in the long run as the tie-up will lead to cost savings of at least £90million a year, after the £73million cost of the merger.

Barratt boss David Thomas said: “This is an opportunity to bring together two highly complementary companies.”

Richard Hunter, head of markets at Interactive Investor, described the tie-up as “a seismic shift for the sector”.

The deal has to be approved by shareholders and the financial watchdog. Shareholders will get to vote in mid-May and the companies hope to complete the deal in the second half of the year.

Co-op: change shoplift laws

CO-OP says that a change in the law is the best way to stop store crime.

Criminology professor Emmeline Taylor said shopworkers need more legal protection.

She said: “Police have lost grip on the scale and severity of acquisitive crime.” Co-op said there were more than 300,000 incidents of shoplifting, abuse, violence and anti-social behaviour in its shops last year.

It has spent more than £200million in recent years to make its stores and communities safer.

Co-op’s Matt Hood said: “We are seeing offenders persistently steal large volumes of products.”

Exports tuned up

BRITISH musicians are to be handed £1.6million to help them sell their songs overseas, as the UK is losing out to stars from South Korea and Latin America.

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tHE has already supported Rina Sawayama, pictured, Dave, Jungle, Kae Tempest and Ezra Collective[/caption]

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The EzraCollective has also benefited from the Government scheme[/caption]

Business Secretary Kemi Badenoch today announces fresh backing from the government’s Music Export Growth Scheme (MEGS).

It has already supported Rina Sawayama, pictured, Dave, Jungle, Kae Tempest and Ezra Collective.

Ms Badenoch said: “I look forward to seeing new acts bang the drum for Britain.”

The UK’s share of the global music market has slipped from 17 per cent in 2015 to around 10 per cent.

Sainsbo’s back to basics

SUPERMARKET chain Sainsbury’s is going back to basics by flogging less general merchandise and clothing — to make room for more food.

Boss Simon Roberts said: “We’re determined to be first choice for food.”

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Sainsbury’s boss Simon Roberts is going back to basics to make room for more food in its stores[/caption]

The chain is also planning 75 more convenience stores as part of its “Next Level Sainsbury’s” strategy to add to its existing 821-strong network.

It said it will also expand electric vehicle charging points and improve Nectar loyalty card offers.

Mr Roberts said the grocer would cut costs by £1billion over the next three years by investing in technology and artificial intelligence.

But he refused to rule out job losses, saying Sainsbury’s looks to “protect jobs as much as possible” by being flexible and to “re-skill” and “re-deploy where we can”.

Shares fell five per cent on the news.

Walkout at Asda

ASDA workers at one of its stores are planning a 48-hour strike tomorrow over claims of a “toxic” working environment.

The GMB union said its members had rejected a company offer aimed at resolving the row in Gosport, Hants.

GMB officer Nicola Nixon said: “Members should be able to come to work without the threat of bullying or putting their health and safety at risk.”

An Asda spokesperson said it had been working “to try and agree a fair solution”.

Imperial lather

SHARES in soap-maker PZ Cussons tumbled 17 per cent yesterday after the Imperial Leather maker revealed a loss of £94.2million in the six months to December.

That was a sharp contrast to last year’s £40.5million profit. The firm admitted it had been hit by a currency devaluation in Nigeria, its biggest market.

The currency problems led to foreign exchange losses of around £88million.

Boss Jonathan Myers said: “We have had challenges but we’ve also delivered a turnaround in our UK business.”


THE average UK house price jumped £3,785 in January, marking the fourth month in a row of increases, according to the Halifax. House prices increased by 2.5 per cent over the year, it said, the highest annual growth since January 2023.


Pandora’s rocks

JEWELLER PANDORA said efforts to “transform the perception” of the business are working, as it reported record revenues of £3.2billion in 2023.

It has been busy persuading customers that it’s a “full jewellery brand”, rather than one known mostly for items like charm bracelets. It sold 107million pieces of jewellery last year, it said, and that’s encouraged it to plan to expand its store network.

It said it will open up to 275 additional concept stores by 2026, as well as up to 225 in-store sites.

SHARES

  • BARCLAYS down 1.90 at 144.40p
  • BP down 4.35 at 474.60p
  • CENTRICA up 2.00 at 135.20p
  • HSBC down 4.80 at 627.20p
  • LLOYDS down 0.30 at 41.58p
  • M&S down 4.00 at 241.00p
  • NATWEST down 2.70 at 217.30p
  • ROYAL MAIL down 3.40 at 274.30p
  • SAINSBURY’S down 16.70 at 258.90p
  • SHELL down 18.00 at 2,471.00p
  • TESCO down 9.90 at 280.00p

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