Job losses as builder Barratt Developments takes over rival Redrow in a £2.5bn deal

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

But the connection will not be good news for all staff of the two companies.

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It is expected that around 900 employees – ten percent of the workforce – will be made redundant at the combined company, which will be known as Barratt Redrow.

Workers on site will be spared pain, but bosses said they will cut overlapping roles and consolidate office space.

That could mean closing nine of Barratt and Redrow's 41 offices.

Barratt is already Britain's largest housebuilder and the partnership will increase its dominance in the sector.

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

Together, the two companies have 92,345 homes planned and the capacity to build more than 22,000 per year.

Under the deal, Redrow shareholders will receive 1.44 new Barratt shares for each share they own.

That news sent Redrow's shares up 16 percent, while Barratt's shares fell 5 percent.

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

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

Richard Hunter, head of markets at Interactive Investor described the partnership as “a seismic shift for the industry.”

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

Co-op: Change shoplifting laws

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

Criminology professor Emmeline Taylor said retail workers need more legal protection.

She said: “The police have lost control of the scale and severity of acquisitive crime.” Co-op said more than 300,000 incidents of shoplifting, abuse, violence and anti-social behavior occurred in its stores last year.

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

Co-op's Matt Hood said: “We see offenders stealing large quantities of product all the time.”

Exports have been put on edge

BRITISH musicians will receive £1.6million to help them sell their songs abroad as Britain loses out to stars from South Korea and Latin America.

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Business Secretary Kemi Badenoch today announces new support 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'm looking forward to seeing new acts play for Britain.”

The UK's share of the global music market has fallen from 17 percent in 2015 to around 10 percent.

Sainsbo is back to basics

SUPERMARKET chain Sainsbury's is going back to basics by flogging less generic merchandise and clothing – to make room for more food.

Boss Simon Roberts said: “We are committed to being the first choice for food.”

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The chain is also planning a further 75 convenience stores as part of its 'Next Level Sainsbury's' strategy, expanding its existing network of 821 stores.

It said it will also expand electric vehicle charging stations and improve its Nectar loyalty card offering.

Mr Roberts said the grocer would cut costs by £1 billion next one three years passed to invest in technology and artificial intelligence.

But he refused to rule out job losses and said Sainsbury's aims to “protect jobs as much as possible” by being flexible and “reskilling” and “redeploying where we can”.

Shares fell five percent after the news.

Strike 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 business 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 harassment or having their health and safety at risk.”

A spokesperson for Asda said it was working “to reach a fair resolution”.

Imperial foam

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

That was in stark contrast to last year's profit of £40.5 million. The company admitted that it had been hit by a currency devaluation Nigeriaits largest market.

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

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

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According to the Halifax, the average UK house price rose by £3,785 in January, marking the fourth month in a row of increases. House prices rose by 2.5 percent over the year, the highest annual growth since January 2023.

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The rocks of Pandora

JEWELER PANDORA said its efforts to “transform the perception of the company” are working as it reported record sales of £3.2 billion in 2023.

It has been busy convincing customers that it is 'full' jewellery brand,” rather than a brand best known for items like charm bracelets. Last year the company sold 107 million pieces of jewelry, the company says, prompting the company to make plans 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 locations.