Large association Sanctuary has announced that it is in merger talks with Swan, the same day as Orbit announced that its merger discussions with the latter had ceased. In a stock market update, Sanctuary said it has “entered into discussions with Swan Housing Association to form a business combination”. Any agreement will be subject to detailed due diligence and the approval of boards of both organisations. The announcement was made on the same day as Orbit announced that its nearly year-long merger talks with Swan had ceased, quashing plans to create a 60,000-home landlord. Orbit, which owns and manages 45,000 homes, said the talks had ended “following a lengthy and detailed due diligence process”. The talks between Orbit and Swan emerged in December, on the same day that Swan was rated non-compliant on governance and financial viability by the Regulator of Social Housing (RSH). The regulator had given Swan a rating of G3/V3, meaning it is non-compliant with the Governance and Financial Viability Standard. It remains under “intensive regulatory engagement”.