00:00Berkshire Hathaway is set to acquire Taylor Morrison in an all-cash $6.8 billion deal,
00:06the first major purchase under new CEO Greg Abel.
00:09In a statement, he writes, quote,
00:10Over time, we expect to unify our site-built home building operations into a combined platform,
00:17enabling us to deliver the dream of homeownership to more Americans.
00:21Joining us now is Manuel Begori to talk about this.
00:25And, Manuel, the first interesting thing that I see here is not really the acquisition,
00:31but the fact that they're going to combine these assets.
00:33Normally, Berkshire allows companies they buy to continue running as separate entities, right?
00:41Indeed. That also caught my eye. That was very interesting. Quite remarkable.
00:47I think investors are quite intrigued by the fact of this potential departure from Berkshire's
00:53traditional strategy of allowing businesses that acquire to run independently.
01:01So the fact that, you know, Abel may combine the different businesses in home building
01:08across the portfolio could potentially also set a path for other sectors and businesses
01:15across the different portfolios to also be combined, which is quite interesting.
01:21I agree with that.
01:23But also it's interesting because it's Abel's first significant acquisition, in fact,
01:30since taking over the reins from Buffett.
01:33So I think investors were quite keen to see what would be the best significant acquisition for Abel,
01:41and also how he decides to put the huge amount of cash that they have, right?
01:49So it's almost $400 billion at the end of the first quarter.
01:53So that's a huge pile of cash, and it'll be interesting to see how they deploy that capital going forward.
01:59Yeah.
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