FTSE-100 housebuilder Persimmon is weighing up a takeover bid for rival operator Cala Group, according to media reports.
Sky News said Persimmon was considering submitting an offer for Cala, which sources expect will command a price tag in the region of £1bn.
Cala is being auctioned by owner Legal & General and the deadline for bids is this week. Sky said other housebuilders were also expected to bid for the company.
Legal & General acquired full ownership of Cala in March 2018 from joint owner Patron Capital. The company purchased Patron’s 52.1% stake for £315m.
Earlier this year, Barratt Developments unveiled plans to acquire rival Redrow in a £2.5bn deal, which would create the UK’s largest housebuilder.
The following month, the Competition and Markets Authority (CMA) announced it had launched an investigation into the proposed acquisition and was considering if the transaction would “result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
