Bellway PLC (LSE:BWY) has scrapped plans to launch a £720 million takeover bid for rival housebuilder Crest Nicholson PLC (LSE:CRST).
After the deadline for a firm bid to be made was extended last week, Bellway said on Tuesday that it no longer intended to make an offer for Crest.
“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,” the company said in a statement.
Crest Nicholson had previously said it was “minded to accept” Bellway’s bid, with the deadline for the offer having been extended for further due diligence by each.
Bellway climbed 3.6% to 2,916p on the news, while Crest Nicholson fell 15.7% to 222p.