Berkshire Hathaway Strikes $6.8 Billion Deal for Taylor Morrison in Abel’s First Major Move
Berkshire Hathaway Inc. is set to buy Taylor Morrison Home Corp. in a $6.8 billion all-cash deal — the biggest acquisition since Greg Abel took the helm and a strong signal that the conglomerate sees opportunity in a struggling housing market.
The offer of $72.50 per share represents a 24% premium over Taylor Morrison’s closing price last Friday. It’s the largest transaction Berkshire has made since it bought Occidental Petroleum Corp.’s petrochemical business in January.
“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Abel said in a statement Sunday. “Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans.”
The deal comes as homebuilder stocks have underperformed and mortgage rates hit their highest levels since August. Berkshire ended the first quarter with a record $397 billion in cash, giving Abel ample firepower to pursue acquisitions. Still, the move marks a shift in strategy: Abel’s comments about eventually integrating homebuilding operations contrast with Berkshire’s long-standing practice of letting its subsidiaries operate independently. Christopher Davis, a partner at Hudson Value Partners, called the integration talk “a notable departure” and said “investors will welcome that evolution in approach.”
Berkshire’s shares have slipped 5.6% this year, while the S&P 500 has gained 10.7%. Some shareholders have been hoping for a major deal to help lift the stock. With this acquisition, Abel is making his first big imprint on the Omaha-based conglomerate since taking over from Warren Buffett, who retired last year.
Taylor Morrison, based in Scottsdale, Arizona, is one of the largest community developers and homebuilders in the U.S., with more than 350 communities across 12 states. It also offers home loans, title insurance, escrow and other financial services. Existing management, including CEO Sheryl Palmer, will stay on to lead the company.
This isn’t Berkshire’s first foray into homebuilding. The company already owns Clayton Homes and holds shares in Lennar Corp. The acquisition comes at a time when U.S. housing construction is cooling: new residential construction fell 2.8% in April, and single-family starts dropped 9% — the steepest decline since August. The deal is expected to close in the second half of 2026.
“Over the last 13 years as a public company, we built a track record of strategic growth — expanding our geographic footprint, integrating acquisitions with discipline, and deepening our competitive strengths,” Palmer said. “Berkshire Hathaway’s long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding.”
Goldman Sachs Group Inc. and Moelis & Co. are serving as financial advisers to Taylor Morrison. Simpson Thacher & Bartlett LLP is legal adviser to Berkshire, while Mayer Brown LLP is counsel to Taylor Morrison.
— With assistance from Se Young Lee and Manuel Baigorri.
(Updated with additional deal details.)
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