Self-storage firm Big Yellow has terminated takeover discussions with US investment giant Blackstone. The decision was made after Big Yellow received an update on Blackstone's valuation of the company, which, in light of its own strong performance, strategy, and business model, led Big Yellow to conclude there was no basis for continuing talks.
Blackstone had until December 8 to make a firm offer under UK takeover rules, and Big Yellow indicated this deadline would not be extended. The UK-listed group is valued at £2.1 billion, and a cash offer of around £2.7 billion had been suggested as a figure that might persuade some investors to sell.
Speculation previously arose about other potential suitors, including US storage sector players CubeSmart and Extra Space Storage. Big Yellow, operating from 111 locations, is also facing a significant increase in its annual business rates bill, estimated to rise by about £1.8 million following reforms announced in the recent Budget.