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Atlas Holdings Walks Away From BRCK Deal
23 Apr
Summary
- Atlas Holdings will not bid for BRCK Group due to lack of access.
- BRCK's shares dropped sharply following the announcement.
- The company had previously rejected a lower offer from Atlas.
Atlas Holdings has declared it has no intention to make a bid for UK construction materials supplier BRCK Group. This decision comes after Atlas Holdings was denied adequate access to BRCK's confidential information and key management personnel.
The situation arose because BRCK provided only a limited amount of due diligence materials. Furthermore, a brief, 90-minute meeting with the chief executive was deemed insufficient for Atlas to proceed.
Atlas had requested additional information and an extension for the deadline under UK takeover rules. However, BRCK's board indicated it would not grant more time, forcing Atlas to withdraw its interest.
As a result of the collapsed takeover talks, shares of BRCK experienced a significant decline, dropping substantially in early trading. The company had previously rejected a takeover proposal from Atlas Holdings, stating it fundamentally undervalued the business.
