Big Yellow Pulls Plug on Blackstone Takeover Talks

Self-storage operator Big Yellow has officially walked away from negotiations with Blackstone, saying discussions over a potential takeover are now dead.

The UK-listed company said it chose to end talks following an updated valuation from the US investment giant. With the company pointing to its “strong performance, strategy, and business model,” Big Yellow concluded there was “no basis for continuing discussions.”

Blackstone first revealed interest in a possible cash acquisition on October 13. Under UK takeover rules, it has until December 8 to either make a formal offer or step aside. Big Yellow noted it has already informed Blackstone that the deadline will not be extended.

Reports earlier this week suggested Blackstone was considering abandoning the deal anyway.

Big Yellow, recognizable for its bright yellow storage facilities, currently holds a market value of roughly £2.1 billion. Analysts speculated that a bid closer to £2.7 billion might have turned the heads of some shareholders.

When Blackstone’s approach became public, brokers floated the possibility of rival interest from US storage operators CubeSmart and Extra Space Storage.

The company operates 111 locations across the UK and is facing a jump in costs thanks to recently announced business-rate reforms, which are expected to increase its annual bill by about £1.8 million.

PREVIOUS STORY | DEC 3

One of the world’s biggest real estate investors appears to be cooling on a potential multibillion-pound bid for Big Yellow Group, the London-listed self-storage operator.

Insiders say that Blackstone is seriously considering walking away from the deal ahead of a December 8 deadline set by the Takeover Panel to either submit a formal offer or withdraw.

Sources said Blackstone — working alongside the Canada Pension Plan Investment Board (CPPIB) — has not yet made a final decision. Even so, Big Yellow’s leadership is reportedly holding out for at least £14 per share.

The company’s shares were trading around £11.54 on Monday, valuing the group at roughly £2.3bn.

Many analysts and investors had assumed last week’s budget statement from chancellor Rachel Reeves would clear the path for Blackstone to proceed with a firm bid. That remains possible pending further talks.

But according to insiders, the more likely scenario now is that Blackstone will step back.

PREVIOUS STORY | NOV 10:

Big Yellow Group PLC has agreed to extend the deadline for Blackstone Europe LLP to announce whether it intends to make a formal takeover offer for the UK self-storage operator. The new “put-up-or-shut-up” date is now December 8, pushed back from the original deadline of yesterday. The revised timeline places the decision after the UK government’s Budget announcement on November 26, which is expected to include tax increases aimed at reducing the fiscal deficit.

Big Yellow says Blackstone remains at a “preliminary stage” of assessing a possible offer. The investment firm is weighing several factors, including the macro-economic climate and how the upcoming Budget may impact the self-storage sector.

Shares of Big Yellow were up 0.2% on Monday at 1,122.72 pence, giving the company a market value of approximately £2.22 billion. The stock remains down 7.4% over the past 12 months.

PREVIOUS STORY | OCT 16:

As Blackstone nears a deal valued at approximately £1bn to sell its logistics assets to real estate investor Tritax Big Box, it has revealed that it is considering submitting a bid to acquire Big Yellow Group, the U.K.’s largest self-storage company.

Headquartered in Bagshot, Surrey, Big Yellow confirmed on Oct. 14, 2025, that it had “held meetings with a small number of parties in relation to a range of potential options, including a potential sale of the company.”

Regarding its potential offer, a statement from Blackstone stated, “Blackstone Funds’ evaluation of Big Yellow is at a preliminary stage. Blackstone is considering, amongst other factors, the macro-economic environment including the potential impact of the upcoming U.K. budget as it relates to the self-storage sector. Accordingly, there can be no certainty that any offer for the company will be made nor as to the terms of any such offer. A further announcement will be made as appropriate.”

Blackstone must either announce a firm intention to make an offer to Big Yellow or decline to pursue a bid by the evening of Nov. 10, 2025.