Bellway confirmed on Thursday that it made a move last month.

It said: “The Board of Bellway believes that there is compelling strategic and financial rationale for a combination of Bellway and Crest Nicholson which would bring together the strength of each business with complementary brands to reinforce Bellway’s position as a leading UK housebuilder, while enabling Crest Nicholson shareholders to benefit from the scale of the combined business, a reduced risk profile, lower indebtedness and an enhanced landbank to capitalise on the long-term structural growth opportunity in the UK housing market.

“In addition, the Board of Bellway believes a combination would deliver significant operational synergies and support sustainable shareholder returns through the cycle.”

Crest Nicholson revealed that Bellway made an initial offer in April and that the latest approach “significantly undervalued Crest Nicholson and its future standalone prospects and was not in the best interests of Crest Nicholson’s shareholders.”

Bellway now has until July 11 to make another firm offer for the business.