25 March 2008
Taylor Woodrow and George Wimpey have agreed to merge to create Europe's largest house builder. Taylor Wimpey, as the new company will be known, will have annual sales of about UK£ 6,7 billion (€ 9,9 billion), with some 22000 house completions in the UK per year. It will also have interests in the US residential market, with 9000 completions per year.
The merger will be carried out as an all-share transaction, with shareholders in Taylor Woodrow and George Wimpey receiving equity in the newly created company. The ratio will be devised so that existing Taylor Woodrow shareholders will control 51% of Taylor Wimpey, with existing George Wimpey shareholders owning the remaining 49%. Previously announced dividends relating to 2006 will also be paid.
An increased land bank – 92000 plots – and cost savings of at least UK£ 70 million (€ 104 million) per year are the key justifications for the merger.