Crest Nicholson rejects Bellway's £667 million takeover bid, shares rise nearly 10%

From Morningstar: 2024-06-13 20:16:00

Crest Nicholson rejected a £667 million takeover bid from Bellway, causing shares to rise nearly 10%. The offer, made on April 25 and revised on May 7, would represent a nearly 20% premium. Bellway has time to make a higher binding offer, with the potential deal worth just under £600 million.

Despite a recent loss for Crest Nicholson, Bellway believes in the growth opportunity a merger could provide. The bid is part of a trend of M&A activity among UK housebuilders, with Barratt Developments making a bid for Redrow earlier this year. Despite obstacles, the housing market shows signs of recovery benefitting Bellway.

Bellway shares fell over 4% as investors anticipate a higher offer price. Crest Nicholson’s rejection states the bid undervalues the company, indicating room for a revised offer. The market outlook is improving, prompting optimism for a housing market revival in the UK.

In the UK housing sector, companies are looking to consolidate and grow through mergers and acquisitions. Crest Nicholson’s rejection of Bellway’s bid reflects a trend of increased activity in the sector. Despite challenges, optimism exists for a recovery and long-term growth in the UK housing market.



Read more at Morningstar: Crest Nicholson Shares Surge as it Rebuffs Bellway