Berkshire Hathaway snaps up 8.5bn homebuilder Taylor Morrison in largest deal under Abel
Berkshire Hathaway makes its largest acquisition under new CEO Greg Abel with an $8.5bn bet on US housing recovery.
Berkshire Hathaway has agreed to acquire homebuilder Taylor Morrison for $8.5 billion, marking the first major deal under CEO Greg Abel’s leadership. The transaction, announced on Monday, signals Berkshire’s confidence in a long-term rebound of the US property market, which has faced headwinds from high mortgage rates and supply constraints. Taylor Morrison, one of the largest homebuilders in the US, will operate as a standalone subsidiary under Berkshire’s umbrella, according to a statement from the conglomerate .
The deal follows months of speculation about Abel’s strategy to deploy Berkshire’s $160 billion cash pile, the largest in its history. Analysts note the acquisition aligns with Warren Buffett’s long-standing preference for undervalued assets in cyclical industries. "This is a classic Berkshire move—buying when others are cautious," said one investment banker familiar with the negotiations .
Investor reaction has been mixed. While some applaud the timing, citing signs of stabilization in US housing starts, others question the premium paid for Taylor Morrison, which has struggled with rising construction costs. The company’s shares have underperformed peers over the past year, though its land holdings in high-growth Sun Belt markets are seen as a key asset.
The acquisition comes as Berkshire faces pressure to diversify beyond its core insurance and rail businesses. Abel, who succeeded Buffett as CEO in 2024, has hinted at further deals, though none have approached this scale. Berkshire’s last major purchase was the $11.6 billion acquisition of Alleghany Corporation in 2022, a deal overseen by Buffett himself.
Separately, investors are seeking exposure to pre-IPO opportunities, with SpaceX drawing particular interest amid its plans for a public listing. However, analysts caution that regulatory hurdles and valuation concerns could delay any offering . Berkshire has no known stake in SpaceX, though Buffett has previously expressed skepticism about investing in unproven technology ventures.
The Taylor Morrison deal is expected to close in the third quarter, pending regulatory approval. Abel has not ruled out further acquisitions, though he has emphasized a preference for "bolt-on" deals that complement existing businesses. Berkshire’s next earnings report, due in August, will offer further clues on its capital allocation strategy.
- euronews
- financial times
Articles
FTAVs further reading America; broadband inflation; SpaceX; Andrew Bailey; book collecting; search; and AI successionism
financial times · 6 days ago
Ousted BP chair called challenging by investors Plus, investors seek pre-IPO SpaceX exposure, the historic chips rally and some colourful Hepworth in London
financial times · 6 days ago
![Road freight: The silent drivers of trade face high fuel prices and an ageing workforce Despite rising fuel costs and mass shortages of drivers, Lyall Cresswell, CEO of the Transport Exchange Group is still confident that theres a lot more efficiency [to] eke out of the market.](https://images.euronews.com/articles/stories/09/75/45/97/696x392_cmsv2_629a3ac5-fc56-5690-af22-db96a10757ee-9754597.jpg)
Road freight: The silent drivers of trade face high fuel prices and an ageing workforce Despite rising fuel costs and mass shortages of drivers, Lyall Cresswell, CEO of the Transport Exchange Group is still confident that theres a lot more efficiency [to] eke out of the market.
euronews · 6 days ago
The Honeywell lifer deconstructing a 141-year-old industrials empire Vimal Kapur is presiding over a three-way split that will usher in the end of corporate Americas conglomerate era
financial times · 6 days ago
US tax adviser Ryan strikes $400mn deal to take on Big Four in Europe Texas-based group agrees to buy Svalner Atlas, which had been expected to attract bids from private equity firms
financial times · 6 days ago
Letter: SpaceXs total addressable market — its pure cobblers! From Tony SK Li, Hong Kong
financial times · 6 days ago
Letter: Londons resilience and growth are its main assets From Gavin Poole, CEO, Here East London, London E15, UK
financial times · 6 days ago
Letter: Why oil exporters now risk a bout of Dutch disease From Elisabetta Pellini, Senior Lecturer and Co-Director of the Foundation Year; Research Fellow, Centre for Econometric Analysis, Bayes Business School, London EC1, UK
financial times · 6 days ago
Berkshire buys homebuilder Taylor Morrison for $8.5bn in Abels first big deal First substantial acquisition under new CEO is bet on eventual recovery in property sector
financial times · 6 days ago
Bitcoin Depot has taken its network — comprising some 9,700 kiosks — offline, CEO Alex Holmes said in a statement, and will cease operations citing "increasingly stringent compliance obligations" on crypto ATMs that have made the business infeasible.
bluesky bot · 6 days ago
Berkshire Hathaway to buy US homebuilder Taylor Morrison for $8.5 billion reut.rs/3PV3dUC
bluesky bot · 6 days ago
Billionaire Peter Thiel Relocates to Argentina Over Taxes and Nuclear War Fears Billionaire Peter Thiel has moved his family to Argentina, settling in Buenos Aires amid concerns about high taxes in California and fears of nuclear conflict. The former PayPal co-founder, 58, purchased a mansion in one of the citys most exclusive neighborhoods, enrolled his children in a local school, and has met with top government officials […]
greek reporter · 6 days ago