York-based Persimmon, one of the UK’s biggest housebuilders, is reportedly considering a £1bn bid for Cala Group, a rival firm which has been put up for sale.

The FTSE 100 firm has been mulling a takeover of the company which was put up for sale in March by owners Legal and General.

According to Sky News, Persimmon, which has a market value of £4.74bn, would be a “strong contender” to purchase Cala, with other interested parties including Travis Perkins and Avanti.

The business, which is headquartered in Edinburgh, has been fully owned by Legal and General for the past six years.

If Persimmon is successful in the auction, it would mark the company’s biggest acquisition for years.

In a trading update last month, Persimmon, the UK’s third-largest housebuilder by market capitalisation, behind Taylor Wimpey and Barratt Developments, said it was on track to deliver growth in new home completions this year to up to 10,500.

Both Persimmon and Taylor Wimpey were among eight housebuilders named by the Competition and Markets Authority in February over suspicions they had exchanged commercially sensitive information.

A takeover of Cala by another major housebuilder would underline fresh momentum in the industry’s consolidation, after Barratt Developments unveiled a £2.5bn deal to acquire rival Redrow.

Property giants set to merge after £2.5bn deal approved by shareholders