Catalyst and Network Housing end merger talks
Catalyst Housing and Network Housing Group have decided to end merger discussions.
While acknowledging the strong geographic synergies between the two organisations and the potential merit of a merger, we have reluctantly concluded that the complexity of integrating two such large businesses effectively meant many of the potential benefits for residents and the organisations were unlikely to be realised within a reasonable timeframe.
The two organisations are at different points in their evolution. Catalyst Housing collapsed its group structure in 2011, while Network is currently finalising the consolidation of its structure. As we developed the business case and carried out due diligence, differences in approach and vision were identified in a number of areas of the two businesses.
We have always said that there was no pre-determined outcome and our decision would hinge on tangible benefits being clearly demonstrated and achievable for customers and the organisations.
Helen Evans, chief executive of Network Housing Group, said: “In a potential amalgamation involving two large organisations of roughly equal size and where there is no compulsion to merge, it is not unnatural that cultural and integration issues become very important within the negotiations. Sadly, we have had to recognise that the scale and complexity of the integration task meant we would be unlikely to realise some of the benefits we had hoped for within an acceptable period.”
Rod Cahill, chief executive of Catalyst Housing, said: “The two boards and executive teams have made every effort to achieve a positive outcome to these talks, but unfortunately it was not to be. Both organisations are strong in their own right and will continue to grow and deliver homes and services of an excellent standard to their customers.”
The two organisations will continue to collaborate on issues and projects of mutual interest.
For more information
Simon Graham, Strategy and External Affairs Adviser, Network: 07584 404822 firstname.lastname@example.org
Tom Titherington, Director of Business Development and Market Intelligence, Catalyst: 020 8832 3292 email@example.com