OMAHA, Nebraska: Berkshire Hathaway has agreed to acquire homebuilder Taylor Morrison Home Corp. for $6.8 billion in cash, marking the first major multibillion-dollar acquisition under Chief Executive Officer Greg Abel since he succeeded Warren Buffett.

The deal, announced on May 31, values Taylor Morrison at $72.50 per share, representing a 24 percent premium to the company's closing stock price on Friday. The transaction gives the Scottsdale, Arizona-based builder an enterprise value of approximately $8.5 billion.

Taylor Morrison shares rose more than 22 percent in June 1 trading following news of the acquisition.

The purchase will help Berkshire deploy part of its massive cash reserves, which totaled $380.2 billion at the end of March. Abel also oversees most of Berkshire's stock portfolio, including major holdings in Apple and Alphabet.

Taylor Morrison operates in 12 U.S. states, primarily in the West and South, through brands including Taylor Morrison, Esplanade and Yardly. Its portfolio spans entry-level housing as well as higher-end "resort lifestyle" communities.

Taylor Morrison Chief Executive Officer Sheryl Palmer will remain in her role after the deal closes, which is expected in the second half of 2026, subject to shareholder and regulatory approvals.

Berkshire already owns manufactured-home builder Clayton Homes, which it acquired in 2003. Abel said he hopes to create a broader housing platform that combines site-built and manufactured homes, making homeownership more accessible for Americans.

In a research note, UBS analyst John Lovallo said a combination of Taylor Morrison and Clayton Homes would create a top-five U.S. homebuilder.

He described the acquisition as "a strong vote of confidence in the mid-long term outlook for the homebuilding industry," noting an estimated housing shortage of about seven million homes in the United States.

Taylor Morrison reported net income of $782.5 million on revenue of $8.12 billion in 2025. Under the agreement, the company would pay Berkshire a termination fee of $221.6 million if the transaction falls apart under certain conditions.

Berkshire's housing-related businesses also include Acme Brick, Benjamin Moore paints, Johns Manville insulation and one of the largest residential real estate brokerages in the United States. At the end of March, Berkshire's investment portfolio also included stakes in homebuilders Lennar and NVR.

Taylor Morrison ranks sixth on Builder magazine's list of the top 100 U.S. homebuilders and also offers mortgage-financing services.

Palmer said in a statement that Berkshire's long-term investment approach is "uniquely well-suited to the multi-year investment cycle of homebuilding."

The acquisition comes amid a broader wave of consolidation in the housing sector. RBC analyst Mike Dahl wrote that the Taylor Morrison transaction "adds further fuel to the fire of consolidation."

In January, Berkshire completed a $9.5 billion cash acquisition of Occidental Petroleum's chemicals business, a deal announced last October.

Berkshire owns dozens of businesses across industries, including Geico insurance, BNSF Railway, energy and industrial operations, as well as consumer brands such as Dairy Queen and Fruit of the Loom.

Goldman Sachs, Moelis, Simpson Thacher & Bartlett and Mayer Brown advised Taylor Morrison on the transaction.