Berkshire doubles down on housing with $6.8 billion Taylor Morrison acquisition  – Firstpost

Berkshire Hathaway has agreed to acquire US homebuilder Taylor Morrison Home Corp for $6.8 billion in cash, marking the first major acquisition under Chief Executive Greg Abel and strengthening the conglomerate’s position in the housing market.

Under the terms of the deal, Berkshire will pay $72.50 per share, a 24 per cent premium to Taylor Morrison’s closing price on Friday. Including debt, the transaction carries an enterprise value of approximately $8.5 billion.

The acquisition represents a significant milestone for Abel, who took over as Berkshire CEO at the start of 2026, succeeding legendary investor Warren Buffett, who remains chairman of the company. It also puts a portion of Berkshire’s massive cash pile, estimated at $380.2 billion at the end of March, to work.

Taylor Morrison, based in Scottsdale, Arizona, is one of the largest homebuilders in the United States, operating across 12 states under brands including Taylor Morrison, Esplanade and Yardly. The company generated revenue of $8.12 billion and net income of $782.5 million in 2025.

Announcing the deal, Abel described Taylor Morrison as a “best-in-class national homebuilder” and said Berkshire plans to combine its site-built housing operations into a unified platform aimed at making homeownership easier for Americans.

Berkshire has maintained a long-standing presence in the housing sector. The conglomerate acquired Clayton Homes in 2003 and owns several housing-related businesses, including Acme Brick, Benjamin Moore and Johns Manville. It also holds investments in major homebuilders Lennar and NVR.

Taylor Morrison Chief Executive Sheryl Palmer said Berkshire’s long-term investment approach is well aligned with the housing industry’s multi-year investment cycle. She added that the acquisition would provide opportunities to expand the company’s platform beyond what it could achieve as an independent business. Palmer will continue to lead Taylor Morrison after the transaction closes.

The deal is expected to be completed in the second half of 2026, subject to shareholder and regulatory approvals.

The acquisition follows Berkshire’s $9.5 billion purchase of Occidental Petroleum’s chemicals business earlier this year, highlighting the company’s renewed appetite for large-scale acquisitions under Abel’s leadership.