(Reuters) - Lennar Corp (N:LEN) said on Monday it would buy smaller rival CalAtlantic Group Inc (N:CAA) in a stock-and-cash deal valued at about $9.3 billion (£7 billion), including debt, to create the largest homebuilder in the United States.
CalAtlantic's shares were up 8.8 percent at $44 in premarket trading, while Lennar's shares were untraded.
The implied value of the deal is $51.34 per share, representing a premium of 27 percent to CalAtlantic's Friday close.
The equity value of the deal, which is expected to close in the first quarter of 2018, is $5.66 billion, based on CalAtlantic's 110.2 million outstanding shares as of July 26, according to Thomson Reuters data.
The $9.3 billion deal includes net debt of $3.6 billion.
The combined entity would have a market cap of about $18 billion, based on current prices, and control 1,300 active communities in 49 markets, Lennar said.
On a pro forma basis, CalAtlantic stockholders are expected to own about 26 percent of the combined company.
Citi was financial adviser for Lennar while JP Morgan Securities LLC advised CalAtlantic.