The deal to acquire Linden Homes and Galliford’s Partnerships & Regeneration businesses will create a group which is able to deliver more than 12,000 homes a year, Bovis said.

Galliford Try shareholders will be given a 29.3% stake in the enlarged Bovis Homes worth £675m as part of the deal.

It also includes a £300 million cash payment to Galliford Try and the transfer of Galliford Try’s 10-year private debt placement of £100m.

The two companies announced on September 10 that their boards had reached agreement in principle on a deal, the details of which have now been fleshed out ahead of a vote by shareholders.

Greg Fitzgerald, CEO of Bovis Homes, said: “This is an exciting and transformational opportunity to create a leading UK housebuilder with an enhanced customer proposition and the ability to increase delivery to more than 12,000 new homes per year.

“The combination with Galliford Try Partnerships gives Bovis Homes a market-leading position in the high growth, more resilient partnerships market, with significant potential to increase revenue and profit while delivering more affordable homes at a time when they are needed more than ever.”

Peter Ventress, chairman of Galliford Try plc, added: “This transaction is a positive development which is in the best interests of both our shareholders and wider stakeholder group. For Galliford Try, it establishes a focused and well-capitalised construction business led by a very experienced and dedicated management team.

“Supported by a robust order book and strong market positions in key sectors, Galliford Try will be well-positioned for the future. This transaction also creates one of the UK’s leading Housebuilding and Partnerships businesses with great opportunity ahead, from which Galliford Try shareholders will benefit through their continued shareholding.”  

The businesses are expected to be integrated early next year.