Saturday 25 May 2019 12:35 pm

Bovis Homes Group in talks with Galliford Try over housebuilding merger

Bovis Home Groups has approached Galliford Try in recent weeks in a bid to reopen discussions about a merger, which previously broke down two years ago.

Bovis is keen to combine a large proportion of their operations, according to Sky News. 

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A deal would be a move toward the consolidation of Britain's housebuilding sector, with two of the UK's ten biggest housebuilders combining.

The market value of Bovis is just over £1.3bn, while Linden Homes owner Galliford is worth around £550m, with a merger between them increasing their stock market value to around £2bn.

How close the two are to agreeing a deal is unclear, a source told Sky News, while Bovis are thought to be uninterested in taking on Galliford's construction sector, which was responsible for a recent profit warning from the company and could be sold to a third party.

Galliford said earlier this week it would cut up to 350 jobs in its construction arm as it tries to streamline its business. 

The approach from Bovis is a reversal of what happened in 2017, when Galliford tried to take over its previously smaller rival. 

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Any offer from Bovis is likely to be in shares, sources told Sky. 

Bovis and Galliford Try both declined to comment on Saturday.

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