Berkshire Hathaway to Buy Insurer Alleghany for $11.6 Billion
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Warren Buffett’s Berkshire Hathaway said the deal includes a 25-day period under which Alleghany can seek a better offer.
Photo:
Nati Harnik/Associated Press
Berkshire Hathaway Inc.
on Monday said it agreed to buy insurer
Alleghany Corp.
for about $11.6 billion in cash in a deal that bolsters the insurance arm of billionaire
Warren Buffett’s
investment vehicle.
Berkshire said it would pay $848.02 a share for Alleghany, a premium of about 25% to Friday’s closing price of $676.75 and a multiple of 1.26 times the New York-based company’s book value at the end of 2021.
Berkshire, whose operations include an array of companies including insurer Geico, said it expects to complete the acquisition by the end of the year.
“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years,” Mr. Buffett said in a statement Monday.
Berkshire, based in Omaha, Neb., said the deal includes a 25-day “go-shop” period under which Alleghany can seek a better offer.
Write to Colin Kellaher at colin.kellaher@wsj.com
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