Van rental outfit Redde Northgate PLC (LSE:REDD) has made a £1.4 billion merger approach for the high street bike and car repair chain Halfords Group PLC (LSE:HFD), according to the Telegraph.
It is understood that the pair have held detailed talks about a possible tie-up after Redde Northgate, which owns 130,000 vans and corporate cars in the UK and Spain, made a firm proposal to Halfords.
A City source said Redde Northgate had proposed a nil-premium merger, but the discussions were abandoned because of disagreements over price, the report said.
The Halfords board is thought to have concluded that any such deal on the terms laid out would have undervalued the company.
However, it is believed that Redde Northgate could mount a fresh bid if the valuation gap between the two sides closes, the report said.
Shares in Halfords were trading 1% lower on Monday while Redde Northgate were trading 1.4% lower.
Founded in 1892, Halfords is one of the most recognisable and biggest names on the high street.
It has roughly 12,000 employees, nearly 400 stores, and close to 650 garages providing full repairs, MOT’s and other services.