Lend Lease, the Australian parent of Bovis, has agreed a £4.3bn merger with developer General Property Trust after it put an additional £192m on the table last Friday.
The decision was well received on the Australian stock market in Sydney, where Lend Lease shares rose 3.35%.
Analysts said they did not expect another bid from a third party as the terms of the Lend Lease’s offer were good.
Peter Joseph, chairman of independent directors at GPT, said the revised terms of the deal had addressed the “financial and non-financial” concerns it had with the first bid. He said: “There are exciting possibilities for the new group,” he said. Some GPT shareholders had been concerned initially that Bovis was a high-risk business.
Greg Clarke, the chief executive of Lend Lease, said GPT shareholders would benefit from significant potential growth available from “our international opportunities in retail, urban communities development and project and construction management”.
Clarke denied that the GPT deal would lead to the sale of Bovis. In a letter that Clark wrote to Building after reading the speculation in the magazine, he stated: “You should be in no doubt that the future of Bovis Lend Lease is as an integral part of Lend Lease Corporation. Bovis lies at the heart of our business in Europe – and elsewhere in the world – and there it will remain.”