A £1.4bn merger approach from van rental giant Redde Northgate has been turned down by high-street chain Halfords, according to reports.

Halfords is now a leading UK retailer of motoring, cycling and leisure products and services, as well as a maor vehicle SMR operator via Halfords Autocentres

The story was reported by The Telegraph, which cited a City source as saying: “Redde Northgate had proposed a nil-premium merger, but the discussions were abandoned because of disagreements over price.”

It’s believed that a revised merger approach could be approved if the valuations gap narrows.

According to The Telegraph, it’s understood that the Takeover Panel was informed of the discussions, which took place in the last few months.

Halfords was founded by Frederick Rushbrooke, in Birmingham in 1892, as a wholesale ironmongery and is now a leading UK retailer of motoring, cycling and leisure products and services. Through Halfords Autocentres, it is also a major independent operator in vehicle servicing, maintenance and repairs.

Redde was formed in 1992, offering a comprehensive package of motor claims accident management services, including vehicle replacement and repair management together with full claims-handling assistance. In March 2020, it merged with Northgate, which had been operating in the van rental sector since 1981, offering a range of ancillary services including fleet management and telematics alongside all servicing, maintenance and breakdown cover.

A Redde Northgate spokesperson said: “We don’t comment on rumours and speculation. As an organisation we are always evaluating opportunities to enhance our customer proposition and we have seen strong growth through a mixture of organic and inorganic opportunities and continue to look for ways to support our customers for the future.”

Halfords declined to comment.