The York-based Persimmon group looks set to become Britain's biggest housebuilder after the board of another building firm, Beazer, agreed to recommend a takeover offer worth about £537.5million.

But Geoff Grewer, Persimmon's company secretary said today: "There's still a tremendous amount of work to do before we can start celebrating."

Should the deal go through, the group's head office, in Fulford, will remain the centre of operations for the enlarged empire "and we shall have to take on more staff there, but we have not yet assessed the numbers of new people needed," said Mr Grewer.

The Persimmon bid, which would add 21,000 plots to the York company's 37,000 plot land bank, still has to be approved by Persimmon shareholders at an extraordinary general meeting likely to be called in the third week of February, although this is expected to be a formality.

"The Office of Fair Trading still has to approve the deal, so there are a number of stages we have to go through before we get out our party hats, but things are progressing well," said Mr Grewer.

The combined force, if approved by Beazer shareholders, will build about 13,500 homes a year - even more than the biggest of the giants Wimpey and Barratt.

Updated: 10:57 Wednesday, January 31, 2001