HALFORDS has reportedly snubbed a £1.4bn merger offer with van hire firm Redde Northgate as it "undervalues" the motor and cycling group.

However, a potential deal may not be completely off the cards, a source told The Telegraph: "There were discussions about what an integration of the two businesses might look like, but there were questions over the valuations of both companies."

"Both share prices weren't doing fantastically well at the time so there is nothing live at the moment. However, it could come back."

Halfords board reportedly rejected the offer on the terms that the deal undervalued the high street retailer.

However, it is understood that Redde Northgate could launch a fresh bid if "the valuation gap between the two sides closes".

City A.M has contacted Halfords and Redde Northgate for a comment.

(c) 2023 City A.M., source Newspaper