- What LSL has walked away from a deal to buy Countrywide
- Why Corporate mergers are becoming complex due to the coronavirus and the stalled sale of Countrywide’s LSH has complicated the deal
- What next Countrywide says it “remains confident in the strength of the underlying business”
LSL Property Services has walked away from a potential deal to buy under pressure Countrywide.
The UK’s largest estate agent has said that it “remains confident in the strength of the underlying business”.
A source close to the deal told React News that the stalled £38m sale of Countrywide’s commercial arm, Lambert Smith Hampton. With uncertainty still surrounding it made making a firm offer for Countrywide more difficult and the business more complex to value.
Last week Countrywide said that it was entering into discussions with other interested parties after its proposed deal with John Bengt Moeller failed to progress sufficiently. The Great Global Holdings owner later told React News that he still intended to complete the deal.
A statement issued by Countrywide following LSL’s withdrawal said: “The company has been seeing the benefits from its ‘back to basics’ turnaround plan, with continuing operations having returned to growth in profitability. The board of Countrywide remains confident in the strength of the underlying business as an independent company.
“The company has seen a positive mood swing in public sentiment through the early part of 2020 which we have seen reflected in a strong start in agreed sales which are ahead of the board’s expectations through February 2020. Whilst we have seen some softening in recent days as a result of Covid-19, it is too early to assess that impact.”