Estate agency group LSL Property Services has pulled out of negotiations to buy fellow estate agent Countrywide.
It was announced last month that the two companies were in discussions about an all-share merger, but LSL today said talks were off.
The £500m tie-up would have brought together two of Britain’s biggest listed estate agents. LSL Property owns Your Move and Marsh & Parsons while Countrywide’s brands include Hamptons International and Gascoigne-Pees.
The news comes as Countrywide, which is heavily burdened with debt, reported last week its deal to sell its £38m commercial property arm, Lambert Smith Hampton, had fallen through.
The company is due to publish full year results later this month and last week announced a trading update that it had seen some softening in the property market as a result of Covid-19.
Countrywide’s share price has dropped 20% today on the news.
CWD : LSL deal to buy Countrywide off