The merger between Countrywide and LSL Property Services, two mortgage broking giants, will not be going ahead, after LSL made an announcement calling the deal off. While the reason has not been officially declared, it coincides with the economic slump that has come off the back of the current global pandemic.
The transaction would have produced a firm worth £470m.
In response to LSL’s announcement, Countrywide commented: “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.”
Following LSL’s announcement, the share price of Countrywide fell by over 50%, while LSL’s share price fell by nearly 30%.
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