Berkshire Hathaway Completes Acquisition of Taylor Morrison for $8.5 Billion

Berkshire Hathaway Agrees to Acquire Taylor Morrison Home Corporation in $8.5 Billion All-Cash Transaction

Berkshire Hathaway, the conglomerate led by Greg Abel, 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 on December 31, 2025. The deal, announced on Sunday in a joint statement, marks a significant expansion of Berkshire's presence in the US housing market, with the conglomerate deploying a fraction of its record cash reserves into the sector.

Under the terms of the deal, Berkshire will pay $72.50 per share for the Scottsdale, 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.

The acquisition extends Berkshire's presence in residential construction beyond its longstanding base in manufactured housing, which has historically centered on Clayton Homes, absorbed by Berkshire 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.

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Taylor Morrison, founded as a public company in 2013, has built a substantial business around residential homebuilding 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.

The agreed purchase price of $72.50 per share matches Taylor Morrison's 52-week high, a level it had last reached in early September 2025. Taylor Morrison's market capitalisation stood at approximately $5.47 billion before the announcement, according to data from LSEG.

The acquisition is expected to close during the second half of 2026, subject to customary regulatory approvals and shareholder consent. 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.

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Goldman Sachs and Moelis served as financial advisers to Taylor Morrison in connection with the deal. Berkshire Hathaway's cash holdings climbed to a record $397 billion as of March 31, 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.