Non-Standard Finance has called off its £1.3bn hostile takeover bid for Provident Financial.
The two firms have been locked in a war of words since Non-Standard Finance began its takeover attempts in February, and in March Provident issued a 47-page rebuttal of its smaller rival’s bid.
Following the lapse of the bid, Provident, which alongside its home credit offering owns Vanquis Bank and Moneybarn, said its “unnecessary distraction” was over.
"The Provident board believes this outcome to be in the best interests of Provident shareholders and greatly regrets the unnecessary distraction, cost and impact of the uncertainty on Provident’s customers and staff caused by Non-Standard Finance pursuing its extended hostile offer," the lender said.
John van Kuffeler, Non-Standard Finance’s group chief executive, said: "I am very disappointed that despite our best efforts customers, employees and shareholders will not now benefit from our transformation plan to build a brighter future by combining Provident with Non-Standard Finance.
"I wish to thank our shareholders for their support and all of Non-Standard Finance’s staff and self-employed agents for their continued dedication. Non-Standard Finance will continue to focus on delivering value to its customers, employees and shareholders by providing a helping hand to the 10-12 million UK consumers that are either unable or unwilling to access mainstream credit.
"Each of our businesses has a top three position in its respective market segment and we believe each is capable of delivering attractive long-term returns for NSF shareholders through a combination of capital and dividend growth."