Scottish housebuilder could sell parts of division to construction giant

Kier Group is in talks to buy parts of the construction division of Scottish housebuilder Stewart Milne.

Both sides have confirmed the potential for a sale, but stressed negotiations were at an early stage.

A statement from Kier said 鈥渆arly discussions鈥� had taken place with the Aberdeen-based group, 鈥渃oncerning the possible acquisition of some of the activities of their construction division鈥�.

It said: 鈥淸Stewart Milne鈥檚] geographical spread, well-established reputation and customer base could provide a good fit with Kier鈥檚 own construction business. However, at this stage there can be no certainty that a transaction will take place.鈥�

Stewart Milne Group said it was 鈥渃arefully considering鈥� Kier鈥檚 interest in Stewart Milne Construction and would undertake a period of due dilligence 鈥渢argeted to be completed by the end of March鈥�.

The company said that if the sale were to go ahead it would 鈥渁llow the Stewart Milne Group to focus on expanding and developing its successful house building and timber frame operations across the UK, in line with our longer term growth plans鈥�.

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