Two housing associations in Manchester have ended merger discussions after 18 months.
Great Places and MSV Housing are no longer coming together to form a single business.
The deal would have created an organisation responsible for more than 33,000 homes across Greater Manchester, Lancashire and West Yorkshire.
In a joint statement, Great Places chairman, Tony Davison, and chairman of MSV, Gareth Hall, said the operating environment had presented “many new challenges” since talks began.
They added both companies would also “take some additional time” to review “in more detail” recommendations made during the due diligence process.
They said Great Places and MSV will continue working as partners rather than one organisation.
Matt Harrison will stay on as chief executive of Great Places, and Charlie Norman will remain at MSV.
Joint statement from Davison and Hall:
“It is with sadness that we are announcing the end of our merger discussions. In the last 18 months since our merger talks began, the operating environment has presented many new challenges that could not have been anticipated when we embarked upon this journey.
“Last week, it was agreed that it was sensible to take some additional time to review the recommendations made during the due diligence process in more detail. This has caused our Boards to reflect on the business case for merger and we have decided to continue working together as partners rather than joining together as one organisation. This decision is consistent with our commitment to adapt to changing circumstances and prioritise the best interests of our customers and stakeholders.
“Great Places and MSV have a long history of working closely in partnership and this will continue through our work as part of the Greater Manchester Housing Partnership, and through our joint efforts to tackle the housing crisis; working together to fight homelessness and in the delivery of new homes.
“We will look to the future by finding new ways to collaborate and plan to continue working together on repairs materials supply for MSV homes, a project that began as part of our merger preparations.
“We will also build on our joint work to date to deliver new governance arrangements that will strengthen the customer voice in our respective organisations
“Both Great Places and MSV would like to thank customers, colleagues and stakeholders for their ongoing support. We want to reassure everyone that both organisations are well placed to continue to serve our customers and communities, invest in existing and new homes and that we will continue to work together as long-standing partners as we look to the future.”
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