CONSTRUCTION group Persimmon bought rival Westbury for £643m yesterday creating the UK's biggest housebuilder.

Persimmon, which is based in York, said the proposed tie-up, which has been backed by the Westbury board, put it on course to build as many as 16,700 homes next year.

The enlarged company may also claim a place in the FTSE 100 Index.

Persimmon has a history of making large acquisitions, having bought Beazer in a £560m takeover in 2001.

Yesterday's deal, which still needs the support of shareholders, will create the UK's largest housebuilder by sales, overtaking Barratt Developments and fuelling expectations of further takeover deals in the sector.

Persimmon chief executive John White said: "The Westbury business is an excellent geographical and product fit for Persimmon.

"It will be integrated quickly into our existing regions and business, and elevate the output of our Charles Church brand.