UK construction firm Barratt Developments is to buy out rival Wilson Bowden in a deal valuing its latest acquisition at £2.2 billion.
The recommended offer gives Wilson Bowden shares a premium of 63 per cent on its July 14th 2006 price, immediately before the announcement that a review of the company's holdings was being conducted.
Advantages laid out in today's statement include the two firms' "highly complimentary geographic fit", improved landbank flexibility and increased commercial development capacity.
"This is an excellent strategic fit for Barratt which will create a sector leader with strengths right across the market, in terms of both geographical coverage and product offering," Barratt chairman Charles Toner commented.
"The benefits of bringing these two well-managed groups together will unlock opportunities that will provide added impetus for future growth."
Wilson Bowden chairman David Wilson said that the decision to choose "the way forward" with Barratt had come "after a long and thorough process".
"The enlarged group will be one of the UK's largest housebuilders. It will be in an excellent position to develop the strengths of each business, housebuilding, social housing and commercial property development, and to deliver significant benefits from the opportunities emerging in the market," he explained.
Barratt shares rose by 4.56 per cent on early morning trading, while Wilson Bowden shares fell by 1.69 per cent.
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