Bellway steps back from £650m Crest Nicholson takeover bid

In response, Crest said it was confident in its standalone prospects, in part due to “the conclusion of the review of provisions for completed development sites supported by external consultants, its highly attractive land portfolio and the new leadership of Martyn Clark”.

The takeover bid began at the end of April. Bellway made an initial offer under which Crest’s shareholders would have received 0.089 new ordinary shares in Bellway. In June, Crest Nicholson rejected a £650m takeover bid.

The board of the Surrey-based firm said the revised proposal “significantly undervalued Crest Nicholson and its future standalone prospects” and was “not in the best interests” of shareholders.

However, the following month its board confirmed that it was “minded to recommend unanimously” a revised takeover bid from Bellway.

The North East house builder said it had made a revised non-binding, all-share offer on 3 July of an implied value of 273p per Crest share, totalling around £720m.

Bellway’s deadline to make an offer for Crest Nicholson or announce that it did not intend to make an offer had been extended to 20 August.

Previously, Bellway and Crest had said “good progress has been made on reciprocal due diligence, with a number of elements satisfactorily completed by both parties”.

The boards of both firms believed “there is compelling strategic and financial rationale” for the merger under the terms of the revised proposal.

The Crest brand would have been retained and used throughout the combined group’s sites, including on Bellway sites.

Crest reported earlier this year that the bill to remediate building safety issues was more than double its last estimate, totalling £31.4m.

Bellway highlighted stronger trading throughout the spring selling season, but noted an “expected reduction in social housing output in financial year 2025”.