Mon, Jun. 22, 11:22 AM
- Last week's merger deal between Ryland and Standard Pacific was the first big deal since Pulte purchased Centex in 2009, but it could be a sign of things to come as homebuilders look to stock up assets to take advantage of the housing recovery.
- Look to smaller, newly public players as spots for deals, say analysts, pointing to Tri Pointe Homes (NYSE:TPH), Taylor Morrison (NYSE:TMHC), and William Lyon (NYSE:WLH) as three whose share prices have struggled versus those of the larger builders.
- Relative giants like D.R. Horton, PulteGroup, and Lennar already have a sizable presence in key markets, and are less likely to be buyers.
- ETFs: ITB, XHB
- Source: Reuters
Oct. 21, 2013, 4:38 PM
- Tri Pointe Homes (TPH) spiked before the close to a 6% gain on a Reuters report that the company is in advanced talks to buy Weyerhauser's (WY) homebuilding unit for ~$2.7B.
- WY, which said in June it was reviewing strategic options for the homebuilding and real estate development unit, is said to be trying to finalize a sale to TPH as soon as in the next two weeks.
- Taylor Morrison Home (TMHC) and Brookfield Residential Properties (BAM) are among the companies that also have been in talks with Weyerhaeuser about buying the division, according to the report.
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