York-based Persimmon is reported to be exploring a £1bn take-over of a major Scottish rival.

Persimmon, one of Britain’s biggest housebuilders, with a market capitalisation approaching £4.8bn, is reputed to been looking to buy the Cala Group.

Its owners Legal and General put the Edinburgh-headquartered developer on the market in March.

Sky News has reported that Persimmon is leaning towards submitting an offer for Cala ahead of a bid deadline next week.

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The news channel says ‘City sources’ have told it Persimmon would be a ‘strong contender’ to buy Cala, as its homes sell for much more than those of Persimmon.

It also cites ‘insiders’ saying the Scottish housebuilder is expected to go for ‘about £1bn.’

If Persimmon is successful in the auction, it would mark the York-based company's biggest acquisition for years.

It follows Persimmon in recent weeks reporting a rise in new home completions to 10,500 this year. It’s developments in York include Germany Beck and Bootham Crescent.

The company’s share price has had its ups and downs, but has risen by half since last November, and by around ten per cent in May, though it has tailed off a little in recent days.