Kohler Credit Union’s Post

A tale of two mergers: What do the completion of Barratt-Redrow and the collapse of Bellway-Crest Nicholson mean for Labour’s housebuilding plans? With Barratt and Redrow joining forces in the first deal of what some expect to be a wave of industry consolidation, Joey Gardiner looks at whether the ground-breaking merger is likely to help or hinder the government’s chances of hitting its sky-high 1.5m housebuilding target #UKhousing

Shareholders approve £2.5bn Barratt and Redrow merger Barratt Developments plc and Redrow’s #shareholders have overwhelmingly approved the anticipated #merger of the two large #housebuilders. The combined business would create a mega #housebuilder turning over £7.45bn and delivering over 22,600 homes a year, based on past #performance. The deal remains subject to clearance by the UK competition Watchdog which has launched a preliminary #investigation into whether the formation of would see a substantial lessening of #competition within any #market or markets. Under the proposed deal, #Redrow shareholders will hold 33% of the combined group and #Barratt shareholders 67%.  Barratt said the deal would allow for £90m in cost-saving #synergies and offered #opportunities to consolidate the supply chain. Combined the business, which retains the three brands – Barratt, WILSON HOMES and Redrow – would have net cash of £874m.

Hear about the result season so far and its recurring themes. Next, insights on Michael Hill Jeweller’s acquisitions. Do we have money for diamonds? Ongoing security measures experienced in New Zealand had a direct impact on earnings, not in Canada or Australia, only in New Zealand. Then onto market figures for today. For more market insights and our terms and conditions, visit www.jmiwealth.co.nz #jmiwealth #marketupdate #reportingseason

Mergers & Acquisitions - Barratt Developments plc and Redrow shareholders approve £2.5bn merger #Barratt and #Redrow’s shareholders have overwhelmingly approved the anticipated merger of the two large #housebuilders. The combined business would create a mega house builder turning over £7.45bn and delivering over 22,600 homes a year, based on past performance. The deal remains subject to clearance by the UK competition watchdog which has launched a preliminary investigation into whether the formation of would see a substantial lessening of competition within any market or markets. Under the proposed deal, Redrow shareholders will hold 33% of the combined group and Barratt shareholders 67%. Barratt said the deal would allow for £90m in cost-saving synergies and offered opportunities to consolidate the supply chain. Combined the business, which retains the three brands – Barratt, David Wilson Homes and Redrow – would have net cash of £874m. https://lnkd.in/efCeKN3e

A newcomer is set to enter the upper echelons of Britain’s commercial property sector after two of the country’s biggest warehouse owners agreed a multibillion-pound merger. The tie-up between Tritax Big Box and UK Commercial Property Reit is intended to create a landlord with a £6.3 billion portfolio, made up mostly of logistics depots and warehouses, that generates £290 million a year in rent. With an expected stock market value of close to £4 billion, it would become the fourth largest commercial property owner listed on the London Stock Exchange and would be in with a shout of inclusion in the FTSE 100 index of Britain’s biggest publicly quoted businesses.

Three rural Saskatchewan credit unions, Cypress Credit Union, Prairie Centre Credit Union, and Diamond North Credit Union are moving towards a merger. Voting for membership will take place in September, with Jan. 1, 2025, targeted for the merger if approved by regulators. "This [merger] is going to allow us to bring more long-term stability," said Blair Wingert, CEO of Prairie Centre Credit Union, who would become CEO of the proposed credit union. "It will allow us to be more competitive in the market as well as staying current [by] being able to provide the updated technology and some of the services we see coming down the pipeline the next few years." Read here to learn more: https://bit.ly/3Vimzl5 #canadacreditunions

Consolidation in the market is inevitable. If you look back over a number of years there have been many within the Real Estate space, especially at the REIT level. So the recent list has seen: - Tritax Big Box and UK Commercial Property - LondonMetric and LXi - Custodian and Abrdn Property Income - Shaftesbury and Capital & Counties Merging two real estate investment trusts (REITs) can yield several benefits. It enhances diversification by pooling different property portfolios, potentially reducing risk. Economies of scale can lead to cost savings through streamlined operations and increased negotiating power. Additionally, a larger combined entity may attract more investor interest and improve access to capital markets. Synergies from complementary expertise and resources can enhance overall performance and competitiveness in the real estate market. So why wouldn't you do it? If you look back over the last decade, there are five new entrants in the Top 10 listed real estate groups - three achieved by mergers. Merging isn't new and it will continue. So who might be next? https://lnkd.in/epMqf2bX #RealEstate #Deals #REITs

Be sure to pick up a copy of today’s The Salem News, Gloucester Daily Times, or Newburyport Daily News to see our merger announcement on the front page of the Real Estate Marketplace! #realestate #northshorerealestate #marealestate #nhrealestate #merealestate #gloucesterdailytimes #thesalemnews #newburyportdailynews

As part of the merger announced by Barratt Developments PLC (LSE:BDEV) and Redrow PLC (LSE:RDW) today, the pair described the deal as a “uniquely compelling” opportunity to “create an exceptional UK homebuilder” – though some suggested it looked like two worse-for-wear individuals hugging each other for support. The reality is somewhere in between the utopian and cynical extremes, though the merger does have a defensive feel to it. Alongside accepting a takeover from its larger FTSE 100 rival, Redrow announced a 57% drop in half-year profits today and said subdued recent trading means its full-year results will be at the low end of its previous guidance, while Barratt’s interims showed a 70% plunge in profits and that housing completions are expected to fall 18.6-21.5% for the full year. More at #Proactive #ProactiveInvestors #LSE #BDEV http://ow.ly/IMPF105fA5K

I just wanted to share a slide put together by our brilliant Chief Economist, Luis G Dopico, showing why there has been a steady decline in the overall number of credit unions since 1970. What happened in 1970 you ask? Well kind of a lot - https://lnkd.in/dpH9yq3E. This does highlight that we really need is for the NCUA to make it much easier to charter new credit unions in addition to trying to prevent needless mergers. Around 3% of credit unions have been merged away pretty consistently each year since the NCUA was formed, while the number of new credit unions being chartered each year has dropped to numbers I can generally count on my fingers.