Business Briefs: Pulte Homes to Acquire Rival Centex Corp. in Deal Worth $1.3 Billion

Pulte Homes Inc. has agreed to buy rival Centex Corp. in a $1.3 billion deal combining two of the three most widely known home builders in the Raleigh-Durham area and in the Southeast, for the most part. That leaves Beazer Homes standing alone and becoming more and more vulnerable. The all-stock transaction, in which Pulte also will assume $1.8 billion in Centex debt, will create the nation's largest home builder.

According to Triangle Business Journal's 2009 Book of Lists, Dallas, Texas-based Centex (NYSE: CTX) ranks No. 2 and Bloomfield Hills, Mich-based Pulte (NYSE: PHM) is No. 3 among the top residential builders in the Raleigh-Durham market. The move is a smart one on their part. As a combined force, they will be better able to navigate through the treacherous waters of the current housing downturn.

Upon closing of the transaction, Pulte shareholders will own approximately 68 percent of the combined company, and Centex shareholders will own approximately 32 percent. Now if only Beazer Homes could find someone to merge with, despite the ongoing FBI investigation, then they would be in a better position.