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Fri October 30 2020

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Taylor Wimpey wants out of the USA

30 Nov 10 Taylor Wimpey has hired a Wall Street bank to try to find a buyer for its US house building subsidiary.

According to the Reuters news agency, JPMorgan Chase is advising on the sale of Taylor Morrison, which builds houses in California, Arizona, Colorado, Texas and Florida.

Potential buyers have been sounded out on a deal.

While no official statement has yet been made by the company, Taylor Wimpey chief executive Peter Redfern has previously said that he does not expect to be in the US market in the long term.

The housing market in the States has taken a hammering in recent years and defaults on home loans there was at the heart of the global credit crisis. Analysts therefore do not exactly expect a bidding war to break out over Taylor Morrison, despite its net operating assets valued at £454m.

The USA’s National Association of Home Builders/Wells Fargo Housing Market Index was at 16 in November. A reading of more than 50 indicates that more builders view sales conditions as good than poor. The index has not been above 50 since April 2006.

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MPU

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