- Bellway walks away from its £720 million takeover deal.
- Crest Nicholson had been the subject of multiple bids from Bellway and also one from Avant Homes.
- Crest says it remains confident in its standalone prospects.
Susannah Streeter, head of money and markets, Hargreaves Lansdown:
‘’The bidding war for Crest Nicholson is crumbling after Bellway walked away from its high-vis bid for the firm. Investors’ disappointment is reflected in the share price slide, with the stock falling by more than 17%. Shares are not back at the level they were before the first bid from Bellway, indicating that there is a glimmer of hope Avant Homes may come through with another offer. It’s not clear exactly why Bellway has walked away after a deal between the two looked close, but the talks between the two clearly raised some concerns that a long-term tie-up may not justify the £720 million price tag. Both firms remain bullish about their stand-alone prospects, helped by the recent interest rate cut, with more reductions expected on the horizon.
With the government determined to power ahead with its plan to build 1.5 million new homes, and steam roller planning obstacles, there is confidence about opportunity and demand going forward. But a fresh bid for Crest Nicholson can’t yet be ruled out, at a time of consolidation in the industry.’
