FTSE 100 movers: Barratt gains ahead of merger; BAE Systems slumps

London’s FTSE 100 was up 0.6% at 8,364.31 in afternoon trade on Monday.

Barratt Developments gained as it and Redrow said their impending £2.5bn merger should complete later this week despite local competition concerns raised by regulators.

Russ Mould, investment director at AJ Bell, said: "Barratt’s acquisition of Redrow is expected to clear within the week, creating a new leader in the UK housebuilding space.

"The issues raised by the competition authorities always looked surmountable given they were restricted to just one part of Whitchurch in Shropshire and Barratt has waived the CMA clearance condition which had been written into the deal. An enforcement order from the regulator is likely but Barratt and Redrow are ready for it and will presumably do what’s necessary to prevent the probe going any further.

"The all-share deal should allow Barratt to replenish its landbank - a necessary precondition to ramping up volumes - with prices in the open market not having retrenched as much as might be expected in the current cycle.

"Barratt will hope its timing is good as the industry looks to pick itself off the floor following a difficult few years marred by a weak property market and rising interest rates. Management will be buoyed by figures from Rightmove showing a big increase in enquiries on homes for sale since the Bank of England cut rates at the beginning of this month.

"Speculation could now build over whether either of Barratt’s main rivals - Taylor Wimpey and Persimmon - might pursue their own deal in response."

BAE Systems was in the red following reports that Germany plans to cut military aid to Ukraine.

FTSE 100 - Risers

Glencore (GLEN) 414.20p 2.74%
Burberry Group (BRBY) 704.20p 2.68%
JD Sports Fashion (JD.) 129.90p 2.64%
Barratt Developments (BDEV) 549.00p 2.16%
Anglo American (AAL) 2,227.50p 2.06%
Entain (ENT) 648.40p 1.79%
Rio Tinto (RIO) 4,812.50p 1.75%
Frasers Group (FRAS) 861.50p 1.59%
3i Group (III) 3,181.00p 1.50%
SEGRO (SGRO) 900.00p 1.46%

FTSE 100 - Fallers

Pershing Square Holdings Ltd NPV (PSH) 3,626.00p -1.31%
BAE Systems (BA.) 1,334.50p -1.07%
Spirax Group (SPX) 7,500.00p -0.99%
Hikma Pharmaceuticals (HIK) 2,050.00p -0.97%
Admiral Group (ADM) 2,948.00p -0.41%
AstraZeneca (AZN) 12,998.00p -0.32%
Rolls-Royce Holdings (RR.) 499.50p -0.22%
Darktrace (DARK) 589.40p -0.17%
Unilever (ULVR) 4,725.00p -0.15%
Smurfit Westrock (DI) (SWR) 3,299.00p -0.12%