(CN) – Pulte Homes and Centex said today that they would merge into a company that would be the nation’s biggest homebuilder. The companies said both boards have approved the all-stock deal and the new company, to be called Pulte Homes, will be based in Bloomfield Hills, Mich. The two companies reported more than $1 billion in losses in the quarter that ended in December.
Centex shareholders are to get 0.975 shares for Pulte for each share of Centex they own. Pulte closed at $10.77 on Tuesday and Centex at $7.62, so the deal gives Centex shareholders a 38% premium, the equivalent of paying them $10.50 a share for their old stock.