PERSIMMON is attempting to create the UK's largest housebuilding company with a £537m takeover offer for rival firm Beazer.

The cash-and-share offer is the latest in a round of moves within the sector after Taylor Woodrow agreed a £535m deal for Bryant on Monday.

Beazer itself became a takeover target after its proposed "merger of equals" with Bryant fell through.

If Beazer agrees to York-based Persimmon's offer, the tie-up would create a company with a turnover of about £1.6bn and a operating profit of £209m.

The two companies would also boast the UK's largest landbank of about 58,000 plots and a portfolio of about 19,000 acres.

Persimmon said it was attracted to Beazer - which is best known for its Charles Church brand - by the opportunity to penetrate markets in the West Midlands, Essex and Cumbria.

But the firm warned it would have to close some regional offices as it sought to achieve cost savings of about £20m from the deal.

John White, Persimmon chief executive, said there would be job losses as the new company reduced its number of offices from 36 to 24.

He said: "There are a number of examples where we have offices in the same town and operating at less than optimum levels.

"Whenever you put two businesses together, there will be job losses.

"We are not able to put a figure on it yet, other to say it will involve 12 offices."

Persimmon said it would not be using the Beazer name, although the Charles Church brand would be retained and extended across the country.

Mr White added: "We have watched how Beazer ran Charles Church and we think that more could have been done with it.

While sales at the Charles Church division would increase, Persimmon said it intended to reduce the Beazer portfolio to create a group with combined sales of 13,000 units a year.

A slight reduction in the company's land bank would enable the new company to cut its debt by about £175m, Persimmon added.

Mr White believed the offer represented a good deal for Beazer shareholders, who will see a significant premium on the terms of the proposed merger with Bryant