After months of dancing around merger plans than would have created one of the UK’s largest housebuilders, The Hyde Group has dropped out of the deal citing ‘practical reasons’.
Earlier this year L&Q, The Hyde Group and East Thames announced that the three housing associations were exploring a possible three-way merger. “We wanted to be certain that we could achieve more together than we could alone,” said a joint statement.
L&Q and The Hyde Group have now mutually agreed to end the merger talks. L&Q and East Thames will instead work towards a two-way merger.
“As financially strong organisations, both L&Q and Hyde remain committed to growth and have ambitious plans to build more homes to help alleviate the housing crisis in London and the South East,” the statement said. “However, it has become apparent that there are practical issues which cannot be easily overcome, and we concluded that in the current environment of unparalleled change and opportunity, resolving these issues would require time that we do not have.
“We will continue to work collaboratively to our mutual benefit and we wish each other the best for the future.”
Meanwhile, merger talks continue between L&Q and East Thames. “Together, working within our financial capacity, we will continue to pursue our vision to create 100,000 new homes, a new training academy, a new community foundation, and a care and support subsidiary,” the housebuilders said. “We are already working with other likeminded organisations to ensure we can deliver this ambition.
“There will be further announcements about the L&Q and East Thames merger over the coming months.”
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