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, Wilson Homes and Redrow – would have net cash of £874m.