Blackstone Inc. announced on December 1 2025 that it is seriously considering withdrawing its offer for the United Kingdom’s self‑storage operator Big Yellow Group, a move that could reshape the company’s European real‑estate portfolio. The original bid, which was first reported in mid‑October, was subject to a firm‑offer deadline set for December 8 2025 by the UK Takeover Panel.
The potential transaction would have valued Big Yellow at roughly £2.3 billion, based on the company’s share price of about £11.54 and a market capitalization near £2.3 billion. Blackstone had indicated a willingness to pay at least £14 per share, a premium that would have lifted the company’s valuation by more than 20 percent.
Blackstone’s reconsideration appears linked to a broader shift toward perpetual capital vehicles and fee‑earning assets, a strategy that has driven the firm’s recent growth in Europe. Management has highlighted the importance of stable, long‑term returns, and the current macro‑economic environment—including the UK budget outlook—has raised concerns about the sustainability of a large, single‑asset purchase in the self‑storage sector.
Big Yellow’s financial performance has been solid, with revenue of £204.5 million for the year ended March 31 2025, up 2 percent from the prior year, and an adjusted profit before tax of £115.6 million, an 8 percent increase. The company’s steady growth and strong cash‑flow generation have made it an attractive target, but the potential withdrawal could prompt a search for alternative buyers or a continuation of its independent operations.
Investors reacted negatively to the news of a possible abandonment, a sentiment that followed the earlier positive market response when the bid was first announced. The shift in outlook reflects concerns that the premium offered by Blackstone may no longer be justified under current market conditions.
If Blackstone ultimately pulls the offer, the deal would be terminated, and Big Yellow would need to reassess its capital structure and growth strategy. For Blackstone, the decision underscores a cautious approach to large acquisitions that may not align with its focus on fee‑based, perpetual capital vehicles.
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