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Big homebuilder merger, Pulte Homes buys Centex Corp.

Charleston real estate, new home constructionPulte Homes, the nation's 4th largest homebuilder and best known in the Charleston area for it's Del Webb 55 plus active adult retirement community in Cane Bay Plantation announced that it was buying Centex Corp, the nation's 3rd largest builder and the largest homebuilder in the Charleston real estate market.

The merger will create the largest US homebuilder.

Read more.

Published Wednesday, April 08, 2009 7:37 AM by Howard Arnoff

Comments

# re: Big homebuilder merger, Pulte Homes buys Centex Corp.

I followed the link and looked deeper into the Yahoo key statistics. Pulte bought Centex for 1.3B in Pulte stock.  Yahoo says Centex has 1.4B cash.  Does that mean the business is worth -100MM?

Thursday, April 09, 2009 6:53 AM by Charlie

# re: Big homebuilder merger, Pulte Homes buys Centex Corp.

Charlie, I don't think the merger was about the value of either company, rather, it is simply industry consolidation in a period of too many builders building too many homes. I think it's more about layoffs and cost savings.

On a positive note, Centex has always been one of Charleston's best builders and very strong in the entry market. In addition to the Del Webb product, Pulte is known for "move up" homes. I think that the combination will be very complimentary. Watch for other big builders to do something similar.

Thursday, April 09, 2009 7:14 AM by Howard Arnoff
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