Berkshire Hathaway has agreed to acquire homebuilder Taylor Morrison Home Corp. in a $6.8 billion all-cash deal, announced on Sunday.
The acquisition values the Scottsdale, Arizona-based residential developer at $72.50 per share, representing a 24% premium over Taylor Morrison's closing price of $58.50 last Friday.
This transaction marks one of the first major strategic moves by Greg Abel since he succeeded Warren Buffett as CEO of Berkshire Hathaway in January. Abel has pledged to uphold the distinctive qualities that define the company: its established culture and values, its dominant insurance operations, its vast conglomerate of unrelated businesses, and the equity investment portfolio overseen by the CEO.
In the first quarter of this year, Berkshire Hathaway also established a new $2.6 billion position in Delta Air Lines.
Berkshire Hathaway has a long-standing involvement in the housing sector, owning a major residential real estate brokerage firm and maintaining holdings in homebuilder stocks in recent years.