Housebuilder Taylor Woodrow has announced a £480m takeover of rival Wilson Connolly.

About 300 jobs will go if the deal, which has the unanimous backing of Wilson Connolly's board, goes ahead.

Most of the jobs are likely to go as a result of combining office facilities as part of overall savings worth an estimated £25m a year from 2005.

Taylor Woodrow said it would continue to operate from ten regional offices and a head office.

If the deal goes through, the North-East is likely to become its largest region, accounting for 14,000 homes a year, compared to an average of 10,000 homes for the other nine regions.

The offer, a mix of cash and shares, will create a major rival to larger companies such as Wimpey, York's Persimmon and Newcastle's Barratt.

While the combined company is expected to be the UK's fourth largest housebuilder in terms of completions, if Taylor Woodrow's US presence is counted, the new company would occupy the number two spot.

Taylor Woodrow's offer values Wilson Connolly shares at 230p.

Ian Napier, chief executive of Taylor Woodrow, said the deal would provide a strong geographical fit, boosting its presence in areas such as the North-East, the North-West and East Anglia.

He said: "It really completes our similar coverage and strengthens those areas where we are a little bit weak."

The announcement came as both companies posted first-half results, with Taylor Woodrow reporting a 20 per cent rise in pre-tax profits to £130.1m, while Wilson Connolly saw a rise of 55 per cent, to £27.2m.