Future of Redrow's headquarters in North Wales 'is secure' under takeover

The North Wales headquarters of housebuilder Redrow is secure under a multi-billion pound takeover by a rival developer. The Flintshire based firm - started by Steve Morgan - has been bought by Barratt Developments in a £2.5bn deal.

There has been speculation the tie-up could lead to job losses as the firms look to cut overlapping roles and consolidate office space. Barratt said it will consider whether there are offices in similar locations and if it could save on rental costs.

This review could lead to the closure of around nine offices, according to the group's preliminary analysis. Barratt currently has 29 offices and Redrow has 12 across the UK. It also said that restructuring could lead to the loss of about 10% of full-time employees across the combined business.

Barratt employed about 6,730 staff at the end of 2023 financial year, and Redrow had around 2,200, meaning there could be as many as 890 jobs affected by the merger.

North Wales Live made enquiries about the future of the Flintshire HQ of Redrow in Ewloe.

In response a spokesperson said: “Redrow's current headquarters in Ewloe, Flintshire, United Kingdom, will be retained as one of the Combined Group's main offices." They would not be drawn into "speculation" over job cuts.

The move, which both firms have said has the potential to increase the number of properties completed, creates a combined business of £7.4bn revenue, and 22,642 homes in 2023. Barratt Redrow, as the company will be known, will market homes under the Barratt Homes, David Wilson Homes and Redrow brands.

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The two companies say it will create a combined business capable of meeting current challenges in the housing market, with Redrow directors saying they believed in standalone prospects for the firm but recognised the benefits of scale. Under the terms of the deal, which is subject to regulatory approval, Redrow shareholders will receive 1.44 Barratt shares for each Redrow Share.

David Thomas, group chief executive of Barratt, said: "We have great respect for Redrow, its overall strategy, its leadership and employees, and its high-quality homes and communities. This is an exciting opportunity to bring together two highly complementary companies, creating an exceptional homebuilder in terms of quality, service and sustainability, able to build more of the high-quality homes this country needs. The combined group would leverage the respective strengths of both Barratt and Redrow, delivering significant benefits to our people, our supply chains, and - most importantly - our customers."

Matthew Pratt, group chief executive of Redrow, said: "Redrow and Barratt combined creates a leading UK homebuilder. Together, we'll be in a much better position to offer a broader range of high-quality and energy efficient homes to customers."

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