Crest Nicholson board ‘minded’ to recommend accepting Bellway’s revised takeover bid

Crest’s shareholders would hold 18% of the enlarged group’s issued and to-be-issued share capital.

Bellway now has to make a firm intention to make an offer for Crest by no later than 5pm on 8 August 2024.

Bellway confirmed in June that it had made a revised all-share offer on 7 May, which was “unanimously” rejected by Crest’s board a week later.

The offer was believed to be in the region of £650m.

The boards of Bellway and Crest said “there is compelling strategic and financial rationale” for the merger under the terms of the revised proposal.

The deal would bring together “the strength of each business with complementary brands to reinforce Bellway’s position as a leading UK house builder, while enabling Crest Nicholson shareholders to benefit from the scale of the combined business”, they said.

Bellway added that there would be other benefits, such as “procurement synergies” and “the ability to open dual outlets on at least 10 current and future Crest Nicholson sites”.

The Crest brand would be 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”.