The U.S. homebuilder sector is on the brink of collapse from the collateral damage of the subprime meltdown. Last week, it was Levitt and Son LLC and Dunmore Homes Inc. who filed for bankruptcy, and now analysts are not wondering if homebuilders will go bankrupt, but when. However, halfway across the world in the United Arab Emirates, Mohamed Ali Rashed Alabbar, chairman and CEO of one of the world's largest homebuilders, Emaar Properties, told CNBC's Erin Burnett Monday he sees dealmaking in the near future for his company, with U.S. homebuilders at the top of Emaar's shopping list.
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"It's a great opportunity. ... We are seriously looking, and we have employed companies that look at opportunities. I think [the] coming 12 months is a great time to expand. ... It is the time. ... Yes, we are looking seriously at possible acquisition, expansion," Alabbar said. "You just do not underestimate the American economy." Alabbar further said in the interview he wants to concentrate on acquisitions, specifically, in the U.S. homebuilding sector.
As for some possible buyout candidates, CNBC speculates that MDC Holdings Inc., Centex Corp. and Toll Brothers Inc. may be attractive takeover candidates with Emaar. The only major hurdle if a deal is proposed will be the politics behind it, as some lawmakers may be hesitant to allow an acquisition of a U.S. homebuilder by a Middle Eastern investor for national security reasons and a backlash from American voters. — Gerald Magpily
CNBC video of Emaar chairman discussing opportunities in U.S. homebuilding sector
See TheDeal.com: Levittown creator goes bankrupt
See M&A Outlook 2008: Cross-border bonanza
