Deeside based housebuilder Redrow has said it has not given up on a merger with struggling rival Bovis Homes, despite the company rejecting an initial offer.
The Redrow Board confirmed the Ewloe headquartered company had made an initial approach to the Board of Bovis on 27 February 2017.
The proposed £3bn merger would create Britain’s fifth-biggest housebuilder, behind Barratt, Persimmon, Taylor Wimpey and Bellway.
Redrow said in a statement it was still keen to reach a deal;
Redrow continues to believe the potential combination offers a compelling opportunity to create a combined business with the scale and operational strength to compete more effectively in the growing UK housebuilding market.
The potential combination would offer a balanced geographic mix of revenue, including a complementary current land bank and forward land bank mix.
Given that the proposal is largely in the form of Redrow shares, Bovis shareholders would be able to share, alongside existing Redrow shareholders, in the proven value creation skills of the Redrow management team.
The Redrow offer was rebuffed by Bovis, analysts believe Redrow could go back with an improved offer.
Galliford Try also confirmed today it had also proposed a merger with Kent based Bovis.
Bovis has been the subject of takeover speculation for some time, it struggled to meet production targets and has seen shares drop price.
Chief executive David Ritchie resigned in January shortly after the company issued a profit warning.