Centex and Pulte Homes to combine in $1.3 billion deal

DALLAS: Pulte Homes and Centex say they will combine in a $1.3 billion stock-for-stock deal that will create US' largest homebuilding company.

The deal also includes $1.8 billion of debt, while the combined business has more than $3.4 billion in cash as of March 31, the companies said.

Both homebuilders' boards unanimously approved the transaction.

Pulte President and Chief Executive Officer Richard J. Dugas Jr says the combination "puts us in an excellent position to navigate through the current housing downturn."