US Stock Market Move | Berkshire intends to acquire Taylor Morrison for $8.5 billion, causing its stock to surge more than 20% in early trading.

On Monday, Taylor Morrison (TMHC.US) soared more than 20% in early trading, hitting a new high for the year at $71.62. In terms of news, American investment giant Berkshire Hathaway (BRKA.S.US) announced that it will acquire the large residential developer Taylor Morrison in an all-cash deal worth approximately $8.5 billion in total enterprise value. This is the first major acquisition completed by Berkshire Hathaway's new CEO Greg Abel. According to the final agreement signed by both parties, Berkshire will acquire all outstanding shares of Taylor Morrison for $72.50 per share in cash, with an equity value of approximately $6.8 billion, representing a premium of about 24% over the company's closing price of $58.50 on May 29. After the completion of the transaction, Taylor Morrison will be delisted from the New York Stock Exchange and operated as a private company. Abel stated in a press release, "We are very excited to have Taylor Morrison join Berkshire's investment portfolio. Over time, we hope to integrate the on-site homebuilding business into a unified platform to help more Americans achieve their housing dreams."