The cash and shares deal is worth around £1.25bn, and will see Countryside shareholders get 0.255 of a share in the new, combined business, as well as 60p in cash for each Countryside share they hold.
The deal means that Vistry will rebrand its partnerships division, which works on affordable housing with councils and housing associations, under the Countryside banner.
The new business will be led by Greg Fitzgerald, currently chief executive of Vistry. He said the deal would create a leader in the partnerships sector, able to “expand the delivery of much needed affordable housing across England”.
He added: “The proposed combination will add the strength of the Countryside brand to Vistry’s own well-established Bovis Homes and Linden Homes brands and will leverage the skills and market knowledge of both the Countryside and Vistry teams.”
Countryside has had a difficult time of late, having pushed out its chief executive in January following a weak trading update, before putting itself up for sale earlier this summer. Last year it agreed to scrap clauses which would see ground rent double on leasehold properties following a probe from the Competition and Markets Authority.
