Berkshire Hathaway agrees to buy Taylor Morrison for $6.8B in first major deal under Greg Abel

Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corp. for approximately $6.8 billion in cash, marking the first major acquisition under CEO Greg Abel.

The deal, expected to close in the second half of this year, is Berkshire’s largest acquisition since its purchase of Occidental Petroleum’s petrochemical business earlier this year. It is also the first major strategic transaction completed since Abel succeeded Warren Buffett as CEO.

Abel said the transaction supports Berkshire’s long-term vision for housing and will eventually allow the company to bring together its site-built homebuilding operations into a larger, more coordinated platform focused on expanding homeownership opportunities.

Taylor Morrison shares climbed about 22% in early trading on Monday, while Berkshire shares were largely unchanged, Yahoo Finance data shows.

The acquisition comes at a time when homebuilder stocks have struggled and mortgage rates remain elevated. Berkshire’s record $397 billion cash position at the end of the first quarter provided ample capacity to pursue large-scale investments.

Taylor Morrison operates more than 350 communities across 12 states and offers a range of housing-related financial services, including mortgages, title, escrow, and insurance products.

The company’s existing leadership team, led by CEO Sheryl Palmer, will continue to run the business after the transaction closes.

The acquisition complements Berkshire’s existing housing investments, including Clayton Homes and its stake in Lennar. It also comes amid softer housing activity, with US residential construction and single-family housing starts declining in recent months.