Bellway has decided not to make a firm offer to take over Crest Nicholson.
The housebuilder, which successfully applied for a 12-day extension to the deadline for making its decision, has decided against the move, which would have created a business with a turnover of £4.3bn.
A spokesperson for Bellway said: “Bellway confirms that it does not intend to make a firm offer for Crest Nicholson.
“Bellway remains confident that its robust balance sheet and operational strength, combined with the depth and quality of its land bank, will enable Bellway to deliver volume growth in the years ahead and support ongoing value creation for shareholders.”
The announcement marks an apparent U-turn for £3.4bn-turnover Bellway, which had previously said its plan to take over its smaller £900m-turnover rival would deliver operational benefits and the ability to open dual outlets on at least 10 sites.
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Under the latest offer proposed on 3 July, Crest Nicholson’s shareholders would have received 0.099 shares in Bellway for each share they own in Crest Nicholson and a dividend of 4 pence per Crest Nicholson share. Crest Nicholson had rebuffed two offers earlier in the year.
Reacting to today’s announcement a spokesperson for Crest Nicholson said: “Crest Nicholson remains confident in its standalone prospects, in particular given conclusion of the review of provisions for completed development sites supported by external consultants, its highly attractive land portfolio and the new leadership of [chief executive] Martyn Clark.”