Persimmon ‘considers £1bn bid’ for Cala

Persimmon 'considers £1bn bid' for Cala

Housebuilder Persimmon is reportedly exploring a £1 billion takeover bid for Cala Group.

Edinburgh-headquartered Cala was put up for sale in March by owner Legal and General, which has owned the business for the past six years.

The company originally bought a major stake in the firm back in 2013, before taking over the business completely in 2018.

Cala reported a fall in profits during the half year, largely due to high interest rates destroying demand for new homes.

Sources told Sky News over the weekend that Persimmon would be a “strong contender” to buy Cala, with other interested parties including fellow builders Travis Perkins and Avanti.

Analysts expect other housebuilders to consider bids including Taylor Wimpey and Avant Homes.

If the sale is completed, it will represent one of the biggest acquisitions for York-based Persimmon in a number of years.

It would also mark another consolidation of the industry, after Barratt Developments announced a £2.5bn deal to acquire Redrow in February. That merger is being examined by the Competition and Markets Authority.

Barratt Developments, Redrow and Persimmon were among eight housebuilders named by the competition watchdog in February over concerns that developers may be sharing “commercially sensitive information” that could be influencing the pace at which new homes are built and the prices at which they are sold.

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