US Investor Joins Forces to Challenge Persimmon for Cala

An American investment firm, Sixth Street, has partnered with Patron Capital Partners, the former owner of Cala Group, to compete against a bid from Persimmon, a major FTSE-100 housebuilder. This collaboration comes as Cala Group, a privately owned housebuilder, is on the market, with Legal & General (L&G) expected to make a decision soon regarding the sale. L&G has owned Cala since 2018 and is considering whether to accept one of the bids or retain ownership if the offers do not meet their price expectations. The ongoing auction for Cala is part of a broader trend of corporate activity within the housebuilding sector. Analysts predict that Cala could be sold for as much as £1 billion, reflecting the competitive nature of the bidding process. The involvement of Sixth Street and Patron Capital Partners adds significant weight to the challenge against Persimmon's offer. Antonio Simoes, the new CEO of L&G, has indicated that the decision to sell Cala is part of a strategy to simplify the company. This move aligns with recent trends in the industry, where companies are actively seeking to consolidate and expand their market presence through acquisitions. As the bidding process unfolds, the outcome will not only impact the future of Cala Group but also reflect the shifting dynamics within the housebuilding market. The decision by L&G will be closely watched, as it could set a precedent for future transactions in the sector.