Galliford Try has abandoned efforts to take over troubled rival Bovis Homes after failing to reach an agreement with Bovis’ board on the terms of a deal.
Galliford’s first bid for Bovis was rejected last month, but the two companies held further discussions in an attempt to reach a deal, which would have been the first large-scale merger in the UK housebuilding sector since the financial crisis.
However, the company confirmed on Tuesday that it is “no longer considering a combination”.
Galliford said discussions had been “largely constructive”, but said it had “become clear to the board of Galliford Try that it is not possible to secure the support of the board of Bovis on terms that represent the best interests of Galliford Try shareholders”.
Its decision comes a week after rival Redrow also gave up its own takeover attempt.
Bovis has been struggling in the last year, failing to meet construction targets and paying customers thousands of pounds to move into unfinished homes. The company issued a profit warning late last year, and chief executive David Ritchie resigned shortly after.
Its problems have led to takeover speculation for some time, but analysts questioned whether its £1bn land bank was worth the cost of an acquisition, given the relative availability of land in the current market.
In a separate announcement this morning, Bovis announced the appointment of former Galliford chief executive Greg Fitzgerald to run the company.