Paul Pedley, chief executive of Redrow, said the decision had been taken mutually. He added that he wanted Steve Evans, Tay's finance director, to stay after the deal was signed in mid-January.
Pedley said: "Inevitably, there will be job losses as we are merging some of their offices with ours, but we will need Tay's site-based people."
He said the deal gave Redrow's maturing Yorkshire and Scotland businesses a major boost and the ability to deliver shareholder value. "The biggest opportunities for us will be in these areas and will double our output there to 450 units. The group as a whole will build 4200 units in the year to next June."
He added that Tay's sites would take on the Redrow brand, and that the deal would give his firm an extra 2000 plots of land with planning consent.
Pedley said: "It is being funded solely from the group's property arm, so there's no borrowing. We are recycling money around the balance sheet 鈥� it's a nice deal from our point of view."
The takeover has sparked City speculation that further deals will follow in the coming months after a busy year of housebuilder consolidation. Taylor Woodrow bought Bryant and Persimmon snapped up Beazer at the beginning of the year. This was followed by Wilson Connolly's purchase of Wainhomes and Wimpey's of Alfred McAlpine Homes in the late summer.
Pedley agreed there may be more deals next year. He said: "Tay was one of many companies we looked at. There are still a lot of us in the housing industry and the way it is going, with more complexities and technology, it is favouring the bigger companies."
Redrow's takeover offer of 110p a Tay share represents an 8% increase on Tay's share price, which rose to 102p after the deal was announced. This is a 31% premium on last Tuesday's price of 84p, before Tay announced it was in takeover talks.
Maunders said Tay's board believed the offer from Redrow represented "the best route available for shareholders to optimise value of their shares, in the current market and in the forseeable future".
Meanwhile, Country & Metropolitan, which owns 26.5%
of Tay, said it plans to pump the 拢1m profit it will make from the deal into housing and commercial developments.
Country & Metropolitan failed to take over Tay earlier in the year when it did not meet the company's asking price.
