Bellway has called off its £720m bid to merge with Crest Nicholson, putting an end to the speculation surrounding a potential merger between the two companies.
Bellway said its decision not to proceed with a firm offer comes after its trading update last week, where the company expressed confidence in its financial health, operational capabilities and substantial land bank.
The firm said that these assets will continue to support its growth trajectory without the need to proceed with the acquisition.
In July, Crest Nicholson’s board said it was “minded to recommend” a £720m bid from Bellway after previously rejecting a £650m offer.
Bellway had until 8 August to make a legally binding offer for Crest Nicholson or else desist in its takeover attempts.
A joint statement from both firms at the time said: “The boards of Bellway and Crest Nicholson believe that there is compelling strategic and financial rationale for a combination of Bellway and Crest Nicholson.
“The revised proposal would bring together the strength of each business with complementary brands to reinforce Bellway’s position as a leading UK housebuilder, while enabling Crest Nicholson shareholders to benefit from the scale of the combined business.
“In addition, the board of Bellway believes a combination would deliver significant operational benefits (including procurement synergies) and the ability to open dual outlets on at least 10 current and future Crest Nicholson sites with complementary brands to drive incremental volumes at attractive margins.”
The merger between Crest and Bellway, which have turnovers of £780m and £1.25bn respectively, would have created further consolidation in the housebuilding sector – with two other giants, Redrow and Barratt, also due to combine.
