More consolidation

Housebuilder Persimmon ‘lining up bid for Cala’

Cala Homes
Cala Group is active across Scotland (pic: Terry Murden)

Cala Group, the housebuilder with its roots in Aberdeen, is subject to speculation of a takeover by one of Britain’s largest companies in the sector.

Persimmon is said to be lining up an offer for its rival, which has been put up for sale by Legal & General with a price tag of about £1 billion.

Taylor Wimpey and Avant Homes are also expected to consider bids, according to Sky News.

There have been questions about Cala’s position within the portfolio of Legal & General, the asset management group that took full ownership of Cala in 2018.

Since rumours began that it wanted to offload Cala its value is said to have risen from £750 million to about £1 billion and could even be worth £1.4bn, according to analysts at Deutsche Numis.

It is thought the sale of Cala could come to a head in the next week. Rothschild is handling the process.

Further consolidation in the housebuilding sector has been suggested since Barratt Developments announced the £2.5 billion acquisition of Redrow, now subject to a competition inquiry.

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