Greg Abel’s first billion-dollar acquisition as Berkshire boss is a bet on US housing. The premium on the share price is considerable.
• Berkshire pays a 24 percent premium on the stock market price for Taylor Morrison
• Greg Abel makes his first major multi-billion dollar deal as CEO
• Acquisition strengthens Berkshire’s position in the US housing market
Berkshire Hathaway is acquiring U.S. homebuilder Taylor Morrison for $72.50 per share in cash, representing an equity value of about $6.8 billion and a total enterprise value of about $8.5 billion. The offer is 24 percent above the most recent closing price of Taylor Morrison shares, which was $58.50 (as of May 29, 2026 closing price). It is the first billion-dollar acquisition under CEO Greg Abel, who has led Berkshire since the beginning of 2026 after Warren Buffett withdrew.
Bet on pent-up demand
The deal is a clear positioning: Despite persistently high mortgage interest rates and noticeable pressure on purchasing power, Berkshire is apparently betting that the US housing market will turn around. The fact that the investment company led to great success by Warren Buffett is taking action now is also a comment on the price development of Taylor Morrison: The share had almost stagnated in the current year up to the time of the announcement, with a loss of 0.63 percent since the beginning of the year. Over the twelve months, there was an increase of just 4.74 percent, significantly less than the S&P 500’s gain over the same period. This was obviously a favorable starting point for Berkshire.
On Monday, the takeover caused the share price to move: the shares on the NYSE were temporarily 22.54 percent higher at $71.69, while Berkshire shares were 0.82 percent lower at $470.61.
Abel’s first exclamation point
For Abel, the takeover is more than a strategic move: it is a signal to investors who have been waiting for activity. At the end of the first quarter of 2026, Berkshire was sitting on a cash balance of almost $400 billion, the highest level in the company’s history. Berkshire shares have fallen by around 5.6 percent in the year to date, while the S&P 500 has gained around 10.7 percent in the same period. Taylor Morrison operates more than 350 residential projects in 21 markets and 12 states, serving entry-level, move-up and lifestyle buyers, and most recently reported annual sales of $8.12 billion.
Existing leadership remains
Taylor Morrison will be delisted after the closing but will retain management under CEO Sheryl Palmer. Abel formulated the goal clearly: Berkshire’s existing house building activities should be merged with Taylor Morrison into a common platform. Berkshire is already active in the prefabricated house segment through Clayton Homes, and Taylor Morrison is now significantly expanding its involvement into the area of conventional new buildings.
The deal is expected to close in the second half of 2026, subject to approval from Taylor Morrison shareholders and customary regulatory approvals. The closing will be the first tangible test of how smoothly Abel guides large transactions through the Berkshire machine.
Claudia Stephan, Benedict Kurschat, Martina Köhler, editorial team finanzen.net
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