Berkshire’s Taylor Morrison (TMHC) acquisition clears key HSR antitrust step

Taylor Morrison Home Corp (TMHC) confirmed that its pending acquisition by a Berkshire Hathaway entity has cleared the HSR antitrust review period, meaning the DOJ/FTC did not move to block the deal during the statutory window. This is a standard but critical milestone in M&A timelines — HSR clearance typically signals the deal is on track and removes the largest regulatory overhang for most domestic acquisitions.

TMHC operates as one of the top-ten U.S. homebuilders with roughly $8.1B in annual revenue, 23% gross margins, and $7.77 in diluted EPS. Berkshire's interest in the homebuilder aligns with its existing exposure to housing-adjacent businesses and its track record of acquiring steady cash-flow businesses at reasonable valuations.

The trade setup here is a classic merger-arb: if TMHC shares are trading at a discount to the announced deal price, the spread should compress now that the biggest regulatory risk is resolved. The key remaining variables are the final deal price, any shareholder vote, and financing conditions — none of which appear threatened by this development.

The bear case centers on macro housing risk: a sharp deterioration in U.S. housing demand or a Berkshire withdrawal for material adverse change (MAC) could unwind the deal, though MAC clauses are notoriously hard to invoke. With HSR cleared, the probability-weighted deal price has moved higher, and any remaining spread is now primarily timing risk rather than regulatory risk.