It’s not the first time this has been attempted but an increased offer from Bovis for the Linden Homes/GT Partnerships part of the Galliford Try group seems to have got all parties excited.
There are certainly synergies.
Firstly, Bovis doesn’t currently have a regional office north of Stafford. The merger would give them an instant presence in the North West, Yorkshire and the North East, all key regional house building markets.
It would also take Bovis’ fledgling partnerships business straight into the premier league on the back of GT Partnerships regeneration market share.
And finally, the divestment of their housing arm would leave Galliford Try as a well-financed stand-alone contractor able to focus on its core business.
The two businesses have agreed terms and are seeking shareholder approval, likely to take around three months. Should the deal proceed the newly formed company would become the fourth largest housebuilder in the UK.