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.
TMHC vs. ETF Alternatives
Other News & PR