Once the transaction — which will result in the merged companies being renamed to Barratt Redrow PLC — is completed, Redrow shareholders will have circa 32.8% of the combined group while Barratt shareholders will hold approximately 67.2%.

On the announcement of the merger, Barratt Developments said: “We believe that the combination will create an exceptional UK housebuilder in terms of quality, service and sustainability, delivering excellence and driving innovation for customers, employees, subcontractors, and the supply chain.

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“The combination will bring together two companies with highly complementary geographic footprints and three highly respected brands — Barratt Homes, David Wilson Homes, and Redrow — with which to accelerate the delivery of much-needed housing across the UK.”

Commenting on the merger, Steve Morgan, founder of Redrow, stated: "During the 50 years since I founded Redrow, I could not be more proud of the unique reputation it has earned for building premium homes and thriving communities.

“Barratt is a homebuilder I have long admired due to their likeminded attention to quality.

“I am confident that the Barratt/Redrow combination with their three high-quality complementary brands, will create a standout homebuilder for the future and accelerate the delivery of much needed homes across the UK."