Bellway given extra 12 days to confirm Crest Nicholson takeover offer

Bellway has been given an extension to its deadline to announce a firm intention to takeover Crest Nicholson.

The Panel on Takeovers and Mergers, which is charged with administering the Takeover Code, has agreed to extend the deadline, originally set for today, until 20 August.

Bellway must either announce a firm intention to make an offer by then or rule out making an offer, under merger code rules.

A spokesperson for Bellway said: “Good progress has been made on reciprocal due diligence with a number of elements satisfactorily completed by both parties.

“However, in order to allow further time for discussions between Bellway and Crest Nicholson, to fully conclude due diligence and the negotiation of definitive transaction documentation the board of Crest Nicholson has requested, and the Panel on Takeovers and Mergers (the “Takeover Panel”) has consented to, an extension to the deadline.”

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Bellway submitted a revised non-binding all-share offer to Crest Nicholson’s board on 3 July, after further discussion between the two housebuilders. Two earlier offers were rebuffed but Crest Nicholson said last month its board were “minded to recommend” Bellway’s latest improved £720m offer.

Under the terms of the latest offer, Crest Nicholson’s shareholders would receive 0.099 shares in Bellway for each share they own in Crest Nicholson and a dividend of 4 pence per Crest Nicholson share.

Bellway believes the merger would deliver operational benefits and the ability to open dual outlets on at least 10 current and future Crest Nicholson sites. It intends to retain its rival’s brand across the enlarged group, including on Bellway sites.

Crest Nicholson made a £31m pre-tax loss on reduced revenue in the six months to April 2024, compared with a £28m profit the previous year.

Bellway recently announced it was “on track” to deliver 7,500 homes this financial year, with improved affordability having yielded a strong spring selling season. It is one of eight housebuilders being probed by the Competition and Markets Authority over alleged “anti-competitive behaviour”

A merger of Bellway and Crest Nicholson would create a business with a turnover of £4.3bn, which would make it the second largest according to Housing Today’s annual Top 50 Housebuilders ranking.