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• Berkshire Hathaway has agreed to acquire US homebuilder Taylor Morrison Home Corporation in an all-cash transaction valued at USD 6.8 billion.
• The deal marks the first major acquisition under Berkshire CEO Greg Abel, who succeeded Warren Buffett at the beginning of 2026.
• Berkshire will pay USD 72.50 per share, representing a 24% premium to Taylor Morrison’s closing share price on May 29.
• Including debt, the transaction carries an enterprise value of approximately USD 8.5 billion and is expected to close in the second half of 2026, subject to approvals.
• The acquisition strengthens Berkshire’s housing portfolio and supports plans to consolidate its site-built homebuilding operations across the United States.
Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corporation in an all-cash transaction valued at USD 6.8 billion, significantly expanding the conglomerate’s presence in the US residential housing sector. The agreement, announced on June 1, will see Berkshire pay USD 72.50 per share for the Scottsdale, Arizona-headquartered homebuilder, representing a 24% premium over Taylor Morrison’s closing stock price of USD 58.50 on May 29. Advertisement
The acquisition marks the first multi-billion-dollar transaction undertaken by Greg Abel since he assumed the role of chief executive officer at Berkshire Hathaway at the start of 2026, succeeding Warren Buffett, who continues as chairman of the company. The transaction also deploys a portion of Berkshire’s substantial cash reserves, which stood at USD 380.2 billion at the end of March 2026.
The companies stated that the acquisition carries an enterprise value of approximately USD 8.5 billion, including debt. Taylor Morrison reported net income of USD 782.5 million on revenue of USD 8.12 billion during 2025, highlighting the scale of the business being added to Berkshire’s portfolio.
Berkshire Hathaway has maintained a longstanding presence in the US housing sector through both acquisitions and investments. The conglomerate acquired Clayton Homes in 2003 and owns several building-products businesses, including Acme Brick, Benjamin Moore and Johns Manville. It also owns one of the largest residential real estate brokerage operations in the United States and holds investments in listed homebuilders.
Announcing the acquisition, Abel described Taylor Morrison as a best-in-class national homebuilder and said Berkshire intended to bring together its site-built homebuilding operations into a unified platform designed to simplify homeownership opportunities for American buyers.
Taylor Morrison operates across 12 US states through the Taylor Morrison, Esplanade and Yardly brands, serving a broad range of housing segments including entry-level homes and resort-style residential communities. The company is ranked sixth among the largest US homebuilders by Builder magazine and also operates mortgage financing businesses supporting home purchases.
Sheryl Palmer said Berkshire’s long-term investment approach was well aligned with the extended development cycles typically associated with residential homebuilding. She indicated that the acquisition would enable Taylor Morrison to expand its platform beyond what would have been possible as an independent listed company.
The transaction is expected to close during the second half of 2026, subject to shareholder and regulatory approvals. Palmer will continue as chief executive after completion of the acquisition.
The deal follows another significant Berkshire transaction completed earlier this year, when the conglomerate acquired the chemicals business of Occidental Petroleum for USD 9.5 billion. Together, these investments signal continued deployment of capital under Berkshire’s new leadership while reinforcing its exposure to sectors linked to housing, construction and long-term economic growth.
Source - Reuters
5th Jun, 2025
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