Berkshire Hathaway to buy Taylor Morrison for $6.8 billion

Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal worth about $6.8 billion, the two companies announced on Sunday. 

The offer of $72.50 per common share represents a 24% premium to the home builder’s latest closing price on Friday. The deal is expected to close in the second half of this year.

“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Greg Abel, chief executive officer of Berkshire Hathaway, 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.”

This is the first multibillion-dollar acquisition under Abel, who took over Berkshire Hathaway earlier this year after legendary investor Warren Buffett retired last year. The Omaha, Nebraska-based firm was sitting on a cash pile that reached $397 billion at the end of the first quarter, its highest level ever.

While investors have been satisfied with Abel’s command over the sprawling conglomerate, some have been hoping that a deal could support Berkshire’s shares, which has fallen 5.6% so far this year. The S&P 500 index has gained 10.7% in the same period.

Taylor Morrison is one of the largest community developers and homeb...