Berkshire Hathaway agreed on Sunday to buy Taylor Morrison Home Corp for US$6.8 billion in cash, expanding the conglomerate’s housing business.
The transaction is Berkshire’s first multi-billion-dollar acquisition since Greg Abel became chief executive at the start of 2026, replacing Warren Buffett, who remains chairman.
It also lets Abel spend some of Berkshire’s cash hoard, which ended March at $380.2 billion. Abel also oversees most of Berkshire’s common stock portfolio, led by Apple AAPL.O and including a growing stake in Google parent Alphabet GOOGL.O.
Berkshire agreed to pay $72.50 per share for Taylor Morrison, a 24% premium over the Scottsdale, Arizona-based company’s closing stock price of $58.50 on Friday.
Taylor Morrison’s shares surged 22 per cent in premarket trading on Monday.
The companies said the takeover has an enterprise value of $8.5 billion. Taylor Morrison posted net income of $782.5 million on revenue of $8.12 billion in 2025.
Berkshire, based in Omaha, Nebraska, has long owned and invested in the housing industry.
It acquired the Clayton Homes manufactured home builder in 2003.
Other Berkshire subsidiaries include building products companies such as Acme Brick, Benjamin Moore paint and Johns Manville insulation, and one of the largest U.S. residential real estate brokerages. Berkshire’s stock portfolio included stakes in home builders Lennar LEN.N and NVR NVR.N at the end of March.
BERKSHIRE ENVISIONS ‘COMBINED PLATFORM’ FOR HOMEBUILDING
In a statement, Abel called Taylor Morrison a “best-in-class national homebuilder,” and said Berkshire expects to “unify our site-built homebuilding operations into a combined platform” to make it easier for Americans to buy homes.
Taylor Morrison operates in 12 U.S. states under the Taylor Morrison, Esplanade and Yardly brands, including entry-level and “resort lifestyle” housing.
It ranks No. 6 among Builder magazine’s top 100 home builders. Taylor Morrison also provides mortgage financing, as do some Clayton units.
Sheryl Palmer, Taylor Morrison’s chief executive, called Berkshire’s long-term focus “uniquely well-suited to the multi-year investment cycle of homebuilding,” and said the purchase “will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company.”
“This deal is especially notable given Berkshire’s involvement but marks the third major public homebuilder bid of the year in addition to some regional private builder deals and adds further fuel to the fire of consolidation within the homebuilding industry as an ongoing narrative,” RBC Research analyst Mike Dahl said.
The transaction is expected to close in the second half of 2026 pending shareholder and regulatory approvals, and Palmer will remain chief executive.
Taylor Morrison and Berkshire did not immediately respond to requests for additional comment.
In January, Berkshire paid $9.5 billion in cash for Occidental Petroleum’s OXY.N chemicals business. That transaction was announced last October.
Goldman Sachs GS.N, Moelis MC.N and the law firms Simpson Thacher & Bartlett and Mayer Brown advised Taylor Morrison on the transaction, the company said.
(Reporting by Rishabh Jaiswal in Bengaluru, additional reporting by Aatreyee Dasgupta; Editing by Chris Reese and Sergio Non)
