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Battle for Survival Initiates Pulte and Centex Homebuilder Merger
Facing the worst housing slump since the Great Depression, Pulte Homes Inc. (PHM), and Centex Corp. (CTX), decided to combine forces in what is widely seen as a bid for survival.
Pulte, the fourth-largest U.S. homebuilder, agreed to purchase Centex, the third-largest, for $1.3 billion in an all-stock deal that creates the largest U.S. homebuilding company by revenue and throws each of them a much-needed safety net.
“It’s pretty normal consolidation in a very troubled industry,” Gary Shilling, president of investment research firm A. Gary Shilling & Co. told Reuters. “It’s exactly what you’d expect. These companies are obviously in big trouble.”
Pulte will…
9Apr2009 | Money Morning | 0 comments | Continued
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