Berkshire to buy Taylor Morrison for $8.5bn

May 31, 2026 at 23:09 UTC

3 min read

New suburban homes in a large development illustrating homebuilder M&A deal and housing sector shift

Key Points

Berkshire Hathaway (BRK-B) will acquire Taylor Morrison in an $8.5 billion all-cash deal
Taylor Morrison shareholders are offered $72.50 per share, a 24% premium
The homebuilder will go private and delist from the NYSE after closing
The deal is expected to close in the second half of 2026, pending approvals

Berkshire strikes $8.5 billion Taylor Morrison deal

Berkshire Hathaway (BRK-B) and Taylor Morrison Home Corporation have entered into a definitive agreement under which Berkshire (BRK-B) will acquire Taylor Morrison in an all-cash transaction valued at about $8.5 billion. The agreement marks a major move by Berkshire into the U.S. homebuilding sector and sets the terms for a full takeover of the publicly listed homebuilder.

Under the deal, Taylor Morrison shareholders will receive $72.50 in cash for each common share. The offer values Taylor Morrison’s equity at approximately $6.8 billion and represents a premium of about 24% to the company’s closing share price of $58.50 on May 29, 2026.

Transaction terms and expected timeline

Company statements indicate that the transaction is expected to close in the second half of 2026. Completion is subject to approval by Taylor Morrison stockholders and the receipt of required regulatory clearances. These conditions mean the transaction will remain pending until customary shareholder and regulatory processes are completed.

Upon closing, Taylor Morrison will become a privately held company. Its common stock will be delisted from the New York Stock Exchange and will no longer be available for public trading. The company will continue to operate under its existing leadership team, including Chief Executive Sheryl Palmer, according to the joint announcement.

Strategic rationale and Berkshire’s homebuilding plans

Berkshire Hathaway Chief Executive Greg Abel said the acquisition will broaden Berkshire’s footprint into site-built homes. He added that, over time, Berkshire expects to unify its site-built homebuilding operations into a combined platform. Company communications frame the Taylor Morrison purchase as a step toward expanding and integrating Berkshire’s presence in the housing market.

Taylor Morrison is described in company materials as a national homebuilder with operations in 12 U.S. states and more than 350 communities across 21 markets. These operations provide Berkshire with an established network of homebuilding activities that can be incorporated into its wider housing-related businesses.

Advisers and deal process

Taylor Morrison’s board engaged multiple financial and legal advisers in connection with the transaction. Goldman Sachs & Co. LLC (GS) and Moelis & Company LLC served as financial advisors to Taylor Morrison. Their role includes advising the company on valuation, deal structure, and engagement with shareholders during the approval process.

On the legal side, Simpson Thacher & Bartlett LLP and Mayer Brown LLP are cited as providing legal and regulatory counsel to Taylor Morrison. These firms are advising on the definitive agreement, regulatory filings, and the steps required to obtain the necessary approvals before the transaction can close in the anticipated second half of 2026.

Key Takeaways

The agreed $72.50 per share price and 24% premium underscore Berkshire’s willingness to pay up for a large national homebuilder footprint.
Taylor Morrison will transition from a listed company to a privately held Berkshire subsidiary while retaining its existing management team.
Berkshire plans to use Taylor Morrison to expand and eventually consolidate its site-built homebuilding operations into a unified platform.
Completion of the deal hinges on shareholder consent and regulatory clearance, leaving execution risk until the expected second-half 2026 closing.