Berkshire Hathaway has agreed to acquire Taylor Morrison Home Corporation in an $8.5 billion all-cash transaction, its first announced takeover since Warren Buffett stepped down as chief executive, as the conglomerate begins to deploy a fraction of its record cash reserves into the US housing market.
The deal, announced on Sunday in a joint statement, will see Arizona-based homebuilder, a premium of approximately 24 per cent to Taylor Morrison’s closing price of $58.50 on Friday. The equity value of the transaction stands at $6.8 billion, with the total enterprise value reaching $8.5 billion.
$8.5 Billion Berkshire Hathaway and Taylor Morrison Deal: What You Need to Know
The acquisition extends Berkshire’s presence in residential construction well beyond its longstanding base in manufactured housing, historically centred on Clayton Homes, the company Berkshire absorbed in 2003. Taylor Morrison, which builds site-built homes and operates across 21 markets in 12 US states, opens an entirely new dimension in Berkshire’s housing operations.
Berkshire chief executive Greg Abel, who assumed leadership of the conglomerate from Buffett on 31 December 2025, said the deal reflected a clear ambition to deepen the company’s footprint in residential construction, with scope to combine operations over time.
“We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Abel said, adding that the company could help expand access to homeownership.
Taylor Morrison Home: The US Homebuilder at the Centre of Berkshire’s Biggest Acquisition in Years
Founded as a public company in 2013, and lifestyle community development across 12 US states. Beyond constructing homes, the company provides a suite of ancillary financial services, including mortgage, title, escrow, and homeowners’ insurance products.
Taylor Morrison’s market capitalisation stood at approximately $5.47 billion before the announcement, according to data from LSEG. The agreed purchase price of $72.50 per share matches the company’s 52-week high, a level it had last reached in early September 2025.
Taylor Morrison chief executive Sheryl Palmer said the transaction would give the homebuilder the long-term financial backing that a capital-intensive sector demands.
“Berkshire Hathaway’s long-term orientation is uniquely well-suited to the multi-year investment cycle of homebuilding, and this combination will allow us to scale the Taylor Morrison platform in ways that would not be possible as a standalone company,” Palmer said.
How Berkshire Hathaway’s Record $397 Billion Cash Reserve Shapes This Deal
as of 31 March, up from $373 billion at the close of December 2025. The conglomerate has reduced its equity portfolio for 14 consecutive quarters. Against that backdrop, the Taylor Morrison acquisition, at $8.5 billion, represents approximately 2 per cent of the available cash reserve.
Taylor Morrison Management Team to Continue Leading Business After Berkshire Acquisition
Following completion of the transaction, Taylor Morrison will become a privately held company, and its shares will cease trading on the New York Stock Exchange. Palmer and the existing senior management team will remain in their roles, operating the business under its established name and structure.
Goldman Sachs and Moelis served as financial advisers to Taylor Morrison in connection with the deal.
Palmer emphasised that the scale of what the company could achieve would be categorically different under Berkshire’s ownership.
Berkshire Hathaway and Taylor Morrison Acquisition Closing Timeline
The two companies expect the transaction to close during the second half of 2026, subject to customary regulatory approvals and shareholder consent.
Berkshire Hathaway and Taylor Morrison Stock Performance Ahead of Deal Announcement
Berkshire’s Class B shares fell 2.45 per cent to $474.48 last week, pulling below both their 50-day and 200-day moving averages. The stock touched a nine-month low of $464.01 in April. Berkshire shares have faced sustained selling pressure since early May 2025, when Buffett disclosed his intention to step down as chief executive by year-end.
Taylor Morrison shares rose 0.9 per cent last week to close at $58.50, recovering from a 52-week low reached in the prior week. The stock nonetheless remained below both its 50-day and 200-day moving averages heading into the weekend announcement.