Barratt to Buy Redrow in Deal Creating UK’s Biggest Homebuilder

Barratt Developments Plchas agreed to buy rival Redrow Plc, a deal that would create the UK’s biggest homebuilder.

With the acquisition, Barratt Developments is taking a major bet on the prospects for a rebound in Britain’s beleaguered housing market ahead of a general election. The deal would give Barratt access to a vast land bank at a time when pledges to increase housing output are likely to play a central role in the upcoming general election.

The all-share offer values Redrow at more than £2.5 billion ($3.2 billion), according to a statement Wednesday.

The UK’s housing market has ...