Persimmon, a leading player in Britain’s housing market with a market cap of £4.74bn, is contemplating a significant move – a potential £1bn acquisition bid for Cala Group, a fellow industry contender currently on the sale block.
City insiders reveal Persimmon’s inclination towards vying for Cala as the bid deadline looms close. Cala, under auction by Legal & General (L&G), is expected to fetch a hefty price tag, possibly around £1bn, owing to its homes’ notably higher average sale prices compared to Persimmon’s offerings.
If Persimmon emerges victorious in the auction, it would signify a major milestone for the York-based giant, marking its most substantial acquisition in recent years.
The company, under the stewardship of Chairman Roger Devlin and CEO Dean Finch, has witnessed a remarkable surge in its share price, soaring over 20% in the past year.
In its recent trading update, Persimmon affirmed its trajectory towards achieving growth in new home completions this year, aiming for figures as high as 10,500.