Mergers on the horizon for home builders?

New York /
Aug.August 19, 2010 08:30 AM

Facing reduced demand for new homes and an unstable path to economic recovery, U.S. home builders are likely to seek mergers in an effort to consolidate their operations and gain market share, according to analysts at Citigroup. Likely targets for acquisition are Ryland Group, Meritage Homes and Beazer Homes USA; while D.R. Horton, KB Home, MDC Holdings and PulteGroup are potential buyers, Bloomberg News reported. Pulte completed the last major buyout in the home building industry last year, when it acquired Centex for $3.28 billion. New home sales have suffered steep declines in the wake of the homebuyer tax credit’s expiration, which required buyers to sign contracts by April 30, and building permits have also fallen. “We view consolidation as the proverbial elephant in the room,” Josh Levin, an analyst for Citigroup, wrote in a letter to clients yesterday. “Management teams are not discussing the issue publicly, but we would be surprised if at lease some of them were not talking about it privately.” [Bloomberg]

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
(DOB)
City hit with lawsuit over Black workers’ treatment at Dept. of Buildings
City hit with lawsuit over Black workers’ treatment at Dept. of Buildings
Mustang, Texas is now owned by billionaire Mark Cuban. (J Elmer Turner Realtors, Inc.)
Mark Cuban buys a Mustang (well, a town called Mustang) in Texas
Mark Cuban buys a Mustang (well, a town called Mustang) in Texas
The Georgetown house once owned by Julia Child (Zillow)
Georgetown home where Julia Child lived hits market for $3.5 million
Georgetown home where Julia Child lived hits market for $3.5 million
Austin, Texas (Credit: iStock)
Austin’s mansion market is booming
Austin’s mansion market is booming
Rendering of Inspire Entertainment Resort (Mohegan Gaming & Entertainment)
Mohegan Gaming completes financing for first phase of South Korea project
Mohegan Gaming completes financing for first phase of South Korea project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...