Centex Corp. will soon become a part of Pulte Homes, thus creating the biggest homebuilding company seen to date. Holders with Centex will get a 0.975 share of Pulte for every Centex share they own. Putle shareholders will then contain 68% of the newly formed company, with Centex holders owning 32%. Each company reportedly has $1.7 billion in cash, making over $3.4 billion in liquidity for the new company. In all this stock transaction will cost $3.1 billion, with $1.8 billion in debt.

Between the companies, they had over 39,000 closings last year, however the recession has had a definite impact. Not as many clients are able to build due to credit being scarce. Hence, both companies thought it would be in their better interests to team up. Pulte´s clientèle is mainly those who have already owned a home and want to move up the ladder, whilst Centex is more geared at first time buyers. Says Jeremy Pinchot, the director of research for Monness, Crespi, Hardt & Co., "It looks like it gets them (Pulte) more competitive in the first-time buyer, first time move-up segment, which is a positive for them,....This helps counterbalance their current exposure to move-up and active adult segments, which are higher price point homes." Hopefully now, the combined company can work both ends of the market and get a better overall client pull.

The new company will be based in Bloomfield Hills Mich, Pulte territory, and will retain the Pulte name. The current President and CEO of Pulte, Richard J. Dugas Jr., will stay as main president. Current chairman and CEO of Centex, Timothy Eller, will become vice chairman. Dugas wrote that, "Combining these two industry leaders with proud legacies into one company puts us in an excellent position to navigate through the current housing downturn, poised to accelerate our return to profitability,...The combination will also allow us to capitalize on the opportunities presented by the addition of Centex's land positions to Pulte's, including Centex's sizable holdings in both Texas and the Carolinas, two areas that continue to exhibit strength in the face of today's difficult housing market,". By merging the company, they will have access to 59 markets, 29 states, and the District of Columbia. As far as the employees for both companies, it has been reported that reductions will be made, but so far no estimate has been given.