Barratt Developments has announced an all-share takeover offer for Redrow, valuing the company at GBP 2.52 billion. The acquisition is expected to create a leading UK housebuilder with combined revenues of GBP 7.45 billion. The deal will result in Redrow shareholders owning approximately 33% of the merged entity, to be named Barratt Redrow PLC. Both companies reported declines in revenue and profit, with Barratt's revenue dropping 34% to GBP 1.85 billion and Redrow's falling to GBP 756 million. The subdued housing market led to halved dividends for both firms. However, UK house prices showed signs of recovery, with a 1.3% monthly increase in January according to Halifax.

Yesterday, the biggest news that moved markets was BP Plc’s results. The oil major rose 5.5% after it announced plans to repurchase $3.5 billion of shares in first half. The FTSE 100 closed Tuesday’s session up 0.9%.

In other news today, the European Union has reached a provisional deal on legislation aimed at shifting euro derivatives clearing from London to the EU.

Among stocks, DCC has indicated that its operating profit is "modestly ahead" of the previous year and expects continued profit growth in line with expectations for the financial year ending March 31. The company has been active in development activities, committing around GBP 355 million to acquisitions since May, including the energy management division of eEnergy Group PLC.

Grainger observed an 8.3% increase in like-for-like rentals over four months, with occupancy at 97.2%. Ashmore Group PLC reported a 38% increase in profit before tax at GBP 74.5 million, despite a 13% drop in adjusted net revenue to GBP 93.4 million.

Meanwhile J Sainsbury's has announced a strategy update targeting GBP 1 billion in cost savings over three years and enhanced returns for shareholders. Ashmore Group PLC reported an increase in profit for the fiscal first half, with profit attributable to equity holders rising to GBP 58.2 million.

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