Halfords has reportedly been approached over a doable merger with van rent agency Redde Northgate to create a mixed group price of greater than £1.3billion.
The 2 firms held detailed talks a few ‘nil premium’ tie-up – during which neither agency receives a premium to the market worth of their shares – in accordance with the Sunday Telegraph.
However the discussions have been mentioned to have been deserted after the Halfords board concluded the deal would have undervalued it.
Redde Northgate may launch a contemporary bid if the 2 sides can shut the hole on valuation, the Telegraph reported. It added that the Takeover Panel, which governs such offers, was knowledgeable of the discussions that passed off over the previous few months.
Halfords sells bicycles and automotive equipment at its practically 400 shops. It has a community of greater than 600 garages offering automotive repairs and MOTs. Its shares are up 12 per cent for the yr thus far however are nonetheless half their worth in mid-2021.
Undervalued: Halfords had a market worth of £512m as of the shut of buying and selling on the finish of final week
Halfords had a market worth of £512m as of the shut of buying and selling on the finish of final week. Redde Northgate is price £836m.
Each companies declined to remark.