Bellway confirms £650m bid for rival housebuilder amid property slump

Crest Nicholson has rejected an unsolicited £650m takeover bid from Britain’s fifth-largest housebuilder, which it said “significantly undervalued” the business.

The approach from Bellway, which was tabled last month and announced last night, led to shares in Crest Nicholson rising by more than 9pc as markets opened.

It comes amid a broader slowdown in Britain’s housing sector, which has been hammered by high interest rates and soaring costs.

In its latest half-year results published on Thursday, Crest Nicholson posted a £31m loss in the six months to May, as it warned that profits for the year were set to be less than expected.

The update led to shares in the business falling 11.6pc.

(Source-Bloomberg)

Despite its recent struggles, bosses said they rejected Bellway’s offer after concluding it “significantly undervalued Crest Nicholson and its future standalone prospects”.

Bellway, which is valued at around £3.2bn, said on Thursday that there remains “compelling strategic and financial rationale” for a potential agreement, claiming it would allow Crest Nicholson to lower its debt and “benefit from the scale of the combined business”.

Crest Nicholson confirmed the rejection of Bellway’s offer on what is Martyn Clark’s first day as chief executive, as he recently moved from rival housebuilder Persimmon to replace Peter Truscott.