UK's Bellway cancels takeover proposal for Crest Nicholson
Real Estate

UK's Bellway cancels takeover proposal for Crest Nicholson

British homebuilder Bellway has withdrawn its $921 million takeover proposal for FTSE midcap peer Crest Nicholson without providing an explanation. Following the announcement on Tuesday, Bellway's shares rose by about 4%, while Crest's stock, which had gained 15% since the approach was revealed in June, dropped by approximately 9%.

Bellway stated that it remains confident in its robust balance sheet, operational strength, and the quality of its land bank, which it believes will support volume growth in the coming years.

In a separate statement, Crest Nicholson expressed confidence in its standalone prospects. Last month, Crest indicated it might recommend a firm offer to its shareholders after Bellway had sweetened its proposal. The most recent proposal, made in July at 273 pence per share, was Bellway's third offer in four months. The previous offer at 253 pence per share, along with the initial bid, had been rejected by Crest.

The consolidation in Britain's homebuilding sector continues as a shortage of properties drives up prices and rents, leading the new Labour government to promise eased planning restrictions and increased building. In February, Barratt, Britain's largest homebuilder, agreed to acquire Redrow in an all-stock deal, while Vistry purchased Countryside in 2022. Last week, Bellway joined larger rivals Persimmon and Taylor Wimpey in expressing optimism about the sector's outlook after the Bank of England lowered its main interest rate.

British homebuilder Bellway has withdrawn its $921 million takeover proposal for FTSE midcap peer Crest Nicholson without providing an explanation. Following the announcement on Tuesday, Bellway's shares rose by about 4%, while Crest's stock, which had gained 15% since the approach was revealed in June, dropped by approximately 9%. Bellway stated that it remains confident in its robust balance sheet, operational strength, and the quality of its land bank, which it believes will support volume growth in the coming years. In a separate statement, Crest Nicholson expressed confidence in its standalone prospects. Last month, Crest indicated it might recommend a firm offer to its shareholders after Bellway had sweetened its proposal. The most recent proposal, made in July at 273 pence per share, was Bellway's third offer in four months. The previous offer at 253 pence per share, along with the initial bid, had been rejected by Crest. The consolidation in Britain's homebuilding sector continues as a shortage of properties drives up prices and rents, leading the new Labour government to promise eased planning restrictions and increased building. In February, Barratt, Britain's largest homebuilder, agreed to acquire Redrow in an all-stock deal, while Vistry purchased Countryside in 2022. Last week, Bellway joined larger rivals Persimmon and Taylor Wimpey in expressing optimism about the sector's outlook after the Bank of England lowered its main interest rate.

Next Story
Resources

Security solutions: Godrej aims for 50 percent revenue surge

The Security Solutions business of Godrej & Boyce, part of Godrej Enterprises Group, has set an ambitious goal of achieving a 50 percent growth in revenue by FY27, targeting a top-line of Rs 15 billion. This marks a significant leap from the Rs 10 billion revenue recorded in FY24, driven by a sharpened focus on expanding exports to the Americas and Europe, alongside leveraging domestic regulatory changes.The company’s exports currently contribute around 10 percent of the division’s revenue with significant potential for growth. By FY27, exports are projected to account for 14-15 percen..

Next Story
Resources

India's luxury housing market soars: CREDAI-MCHI

CREDAI-MCHI, the apex body of real estate developers, has unveiled its latest research analysis, spotlighting a transformative shift in India's urban housing markets towards luxury and premium properties. The study reveals significant growth in average ticket sizes and total sales values across India’s top seven metropolitan cities during H1 FY2025 (April-September 2024).  The data highlights a remarkable 18 percent increase in total sales value, which surged to Rs 2,793 billion, compared to Rs 2,358 billion in the same period of FY2024. Despite a modest 3 percent decline in total units..

Next Story
Equipment

Our commitment to excellence drives our success: Gmmco

In India's dynamic industrial landscape, Gmmco, a comprehensive solutions provider across the construction, resources and energy transportation industries, stands as a testament to innovation. As a powerhouse of the CK Birla Group with a legacy spanning over five decades, it has evolved from a traditional equipment supplier to a full-spectrum solutions provider. Its distinctive approach includes rental solutions, used equipment options, financing support, rebuilt options and tailored product support solutions, setting new benchmarks in customer service. Under the visionary leadership of C..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000