by Calculated Risk on 4/08/2009 12:26:00 PM

From Bloomberg: Pulte to Buy Centex for $1.3 Billion in Survival Bid

Pulte Homes Inc. agreed to buy Centex Corp. for $1.3 billion in an all-stock deal that creates the largest U.S. homebuilder by revenue ...

“This is really good because not only are there too many homes, there are too many homebuilders,” said Vicki Bryan, a senior high-yield bond analyst for New York-based Gimme Credit LLC.
...
Because of complementary geographic presence and market segments, the new company will save $350 million annually, [Pulte Chief Executive Officer Richard Dugas] said.

This is a stock swap (no cash).

Dugas talks about signs of a housing bottom, but the last sentence makes it clear that this merger is about layoffs and cost savings.