Housebuilder Persimmon reportedly plotting £1bn bid for rival

York-headquartered housebuilder, Persimmon, is reported to be exploring a £1bn takeover bid for Cala Group, which has been put up for sale.

Sky News today says Persimmon is considering submitting an offer for Cala – which is one of the UK’s largest housebuilders – ahead of a bid deadline next week.

If Persimmon is successful, it would be the listed company’s biggest acquisition for years.

It is the UK’s third-largest housebuilder by market capitalisation, behind Taylor Wimpey and Barratt Developments.

Last month, Persimmon reported 1,027 first-quarter completions and £1.75bn in forward sales, with its  private forward order book up 18% on the prior year.

It had 82,500 plots in its portfolio at the end of March compared to 86,400 in 2023.

L&G took full control of Cala in 2018. Cala reported a drop in half-year profits last autumn, attributing this to a “challenging market”. The company has a long-term objective of building 3,000 homes annually.

Bankers at Rothschild are overseeing the auction.