Berkshire Hathaway (NYSE: BRK.A; NYSE: BRK.B) agreed to acquire homebuilder Taylor Morrison Home Corporation (NYSE: TMHC) for $72.50 per share in cash, in a deal the two companies announced jointly that values the Scottsdale, Arizona-based builder at $6.8 billion in equity and $8.5 billion including debt — a 24% premium to TMHC’s closing price of $58.50 on May 29.
The acquisition marks the first multibillion-dollar deal under Greg Abel, who succeeded Warren Buffett as chief executive at the start of 2026. Buffett remains chairman.
Berkshire plans to “unify our site-built homebuilding operations into a combined platform,” Abel said in the announcement, with the goal of expanding American homeownership. The acquisition adds Taylor Morrison to a housing portfolio that already includes Clayton Homes, the country’s largest manufacturer of factory-built homes, and Clayton Properties Group, Clayton’s site-built arm, which operates more than a dozen regional homebuilding brands, as well as a stake in Lennar Corporation (NYSE: LEN).
Taylor Morrison — the country’s sixth-largest homebuilder — operates 350-plus communities spanning 21 markets in 12 states, with product lines targeting entry-level, move-up, and resort-lifestyle buyers sold through its Taylor Morrison, Esplanade, and Yardly brand families. The company also provides in-house mortgage, title, and insurance services. Berkshire will take TMHC private upon deal close, delisting the company from the New York Stock Exchange, with CEO Sheryl Palmer continuing to lead the existing management team.
The transaction positions Berkshire at a cyclical trough in US housing. New residential construction fell 2.8% in April, according to government data, and single-family starts dropped 9%. Berkshire is making a forward bet that pent-up housing demand and eventual mortgage rate relief will drive a sector recovery.
The acquisition shows a broader portfolio reset Abel executed in his first full quarter as chief executive. Berkshire’s Q1 2026 13F filing, submitted to the SEC on May 15, showed the conglomerate exited 16 positions entirely in a single quarter — shrinking its holdings from 42 to 29 — including complete sell-offs of Visa (NYSE: V), Mastercard (NYSE: MA), Amazon (Nasdaq: AMZN), and UnitedHealth Group (NYSE: UNH) alongside a dozen smaller stakes.
Abel deployed the proceeds into new conviction bets: a $2.65 billion stake in Delta Air Lines (NYSE: DAL) — Berkshire’s first major airline holding since Buffett’s 2020 sector exit — and a tripling of its position in Alphabet (Nasdaq: GOOGL). Berkshire also built on its existing Lennar position in Q1, a direct forerunner to the Taylor Morrison deal announced two weeks after the filing.
Both parties expect the deal to close in the second half of 2026, subject to Taylor Morrison shareholder approval and regulatory clearance. Berkshire drew on a cash reserve of $380.2 billion at the end of the first quarter to fund the transaction.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
