Sixth Street, Patron reportedly considering bid for L&G-owned housebuilder Cala

US investment firm Sixth Street has partnered with Patron Capital Partners to compete against FTSE 100 housebuilder Persimmon in the bid to acquire privately-held UK housebuilder Cala Group, it emerged on Wednesday afternoon.

According to the report from Sky News, Legal & General (L&G) - which has owned Cala since 2018 - was expected to choose between the two offers soon, though it could retain ownership if neither bid met its valuation expectations.

Cala was estimated to be worth up to £1bn.

Sky said the sale was part of broader strategic changes at L&G under the leadership of new chief executive officer Antonio Simoes, and amid heightened merger and acquisition activity in the UK housebuilding sector.

Recently, Bellway withdrew from a takeover attempt for Crest Nicholson, while Barratt Developments was finalising its £2.5bn acquisition of Redrow.

Both L&G and Sixth Street have declined to comment on the ongoing sale process, Sky News said.

Reporting by Josh White for Sharecast.com.