Housing associations L&Q and Hyde Group have ended plans to merge together, marking the end of a £30bn three-way merger with East Thames.
Hyde Group announced yesterday that the proposed merger with L&Q and East Thames would not be going ahead due to “practical issues” that “cannot be overcome without disproportionate effort”.
Although ending merger plans was a mutual decision, it is understood by Construction News that both housing associations held different views on timings, with L&Q wanting to move faster than Hyde Group.
Hyde Group offered no further comment on its reasons for walking away from the deal.
L&Q and East Thames will instead move towards a two-way merger.
In a statement released yesterday, L&Q said that the two housing associations “remain committed to merging” and will continue to work towards providing 100,000 new homes across London and the South-east.
The merger was expected to save £50m a year within five years through back-office changes, flexible working, “growth through development” and combined purchasing power in procurement.
Both L&Q and Hyde Group said that they will “continue to work collaboratively to our mutual benefit” and wished each other the best for the future.