Feb 7 (Reuters) - British homebuilder Barratt Developments said on Wednesday it would buy Redrow in an all-share deal that valued its smaller rival at about 2.52 billion pounds ($3.18 billion).

Under the terms of the deal, each Redrow shareholder will get 1.44 new Barratt shares for each Redrow share, Barratt said in a statement.

Immediately following the completion of the transaction, Redrow shareholders will hold about 32.8% of the combined Group and Barratt shareholders will hold about 67.2%, it added.

($1 = 0.7934 pounds) (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Rashmi Aich)