Crest Nicholson turned down a £650 million bid from competitor Bellway to acquire the company.
On Thursday, Bellway verified that it had taken action last month. “According to the Board of Bellway, there is strong financial and strategic logic for a merger between Bellway and Crest Nicholson.”
The Board of Bellway said the takeover would allow for both companies to leverage each other’s strengths and strengthen their positions as top UK housebuilders.
Crest Nicholson shareholders would have gained from the combined size of the two companies, the board announced “as well as a lower risk profile, less debt, and a better landbank to take advantage of the long-term structural growth potential in the UK housing market.”
Furthermore, Bellway’s board of directors thinks a merger would produce substantial operational synergies and help shareholders achieve sustainable returns over the long term.
According to Crest Nicholson, the most recent attempt “significantly undervalued Crest Nicholson and its future standalone prospects and was not in the best interests of Crest Nicholson’s shareholders.”
This comes after Bellway launched an initial offer in April. The deadline for Bellway to submit a new, solid offer for the company is July 11.
