Japanese house manufacturer Sekisui House has agreed to buy US housebuilding giant MDC Holdings for $4.9bn.
Sekisui House said the acquisition would make it the fifth largest housebuilder in the US based on the number of houses sold in 2022.
Japan is among the world leaders in prefabricated home manufacturing, with some estimates saying it constitutes around 13% of all houses sold.
Sekisui House said it would transfer its technology and building process to MDC.
It already owns some US housebuilders like Woodside Homes, Holt Homes, Chesmar Homes, and Hubble Homes.
It said the $4.9bn price represents a 19% addition to MDC’s closing stock price on 17 January, the last trading day on the New York Stock Exchange before the announcement.
MDC shareholders will get $63.00 per share in cash.
MDC founder and executive chair Larry Mizel said Sekisui House’s technology and processes were “well-regarded”.