𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Shares in Big Yellow have dropped after ending takeover talks with a potential US buyer.

Investment group Blackstone said it was not intending to make an offer for the self-storage company, sending its share price more than 5% lower on Friday morning.

Big Yellow told investors on Thursday that there was “no basis for continuing discussions with Blackstone” after evaluating a possible offer in the context of its “strong performance, strategy and business model”.

Blackstone had said in October that it was contemplating a takeover bid, but that one of its considerations was the potential impact of the UK Budget on the self-storage sector.

Big Yellow said earlier this week that it was expecting its annual business rates bill to rise by £1.8 million next year following measures announced in the Budget.

It expects 27 of its stores to be affected by changes to the tax system, which will mean that properties worth more than £500,000 are taxed at higher rates.

The higher rates on firms with larger premises – including warehouses, supermarkets, and storage companies – will fund a lower rate for retail, hospitality and leisure businesses.

Blackstone, a US-based private equity company, recently pledged to invest £90 billion into projects and businesses in the UK over the next decade.