Berkshire Hathaway buys Taylor Morrison for $6.8 billion. Buffett touts Abel’s deal-making

Berkshire Hathaway agreed Sunday to acquire homebuilder Taylor Morrison Home in a $6.8 billion deal, deepening the conglomerate’s bet on the U.S. housing market after a prolonged downturn.

The Omaha, Nebraska-based company will pay $72.50 per share in cash for Taylor Morrison, according to a statement. The offer represents a 24% premium to the homebuilder’s closing price on May 29 and values the company at about $8.5 billion, including debt.

Taylor Morrison shares popped 22% on the deal Monday. Class B Berkshire shares fell less than 1%.

The acquisition marks one of the first major strategic deals under Warren Buffett’s successor, Greg Abel, who took over as CEO at the start of 2026. The acquisition, expected to close in the second half of 2026, is relatively modest by Berkshire standards as it’s sitting on a cash hoard nearing $400 billion.

“Berkshire is acquiring a best-in-class national homebuilder, led by an exceptional team and backed by a trusted reputation for customer experience,” Abel said in the statement. “Over time, we expect to unify our site-built homebuilding operations into a combined platform enabling us to deliver the dream of homeownership to more Americans.”

Buffett, 95, lauded Abel for his work on the deal. “Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched,” he told CNBC’s Becky Quick.

The deal suggests Berkshire could be positioning for a recovery in U.S. housing demand despite elevated mortgage rates and affordability pressures that have weighed on the sector in recent years.

“They are betting the housing cycle will turn and that there is pent-up demand,” said Bill Stone, chief investment officer at Glenview Trust and a Berkshire shareholder.

The acquisition expands Berkshire’s already sizable footprint in housing. The conglomerate owns manufactured home giant Clayton Homes, a slew of building product companies as well as Berkshire Hathaway HomeServices, one of the largest residential real estate brokerage franchise networks in the U.S.

Berkshire’s last major deal came in October, when it reached a $9.7 billion cash deal to purchase OxyChem, the chemical business of Occidental Petroleum.