Bovis approaches rival Galliford Try about housebuilding merger

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A tie-up of Bovis and Galliford Try's Linden Homes unit would create one of the UK's biggest housebuilders, Sky News learns.

They added that the construction arm could remain listed as a standalone company or be sold to a third party.

A significant chunk of any offer from Bovis for part or all of Galliford Try is likely to be in shares, sources suggested this weekend. Last year's collapse of Carillion and the travails of Interserve, which owns a poorly performing construction business, underlined the crisis engulfing large swathes of the sector.

At the time, Bovis was struggling to reverse a stark decline caused by a crisis affecting the quality of new homes and its failure to meet construction targets. Bovis may also be interested in Galliford Try's ‎regeneration business, although the extent of that interest was unclear this weekend. Shares in Bovis‎ are down almost 19% in that period, while Galliford Try's have slumped by well over 40%.

 

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