Warren Buffett's Berkshire Hathaway to buy Alleghany for $11.6B

The transaction is expected to close in the fourth quarter of 2022

Warren Buffett’s Berkshire Hathaway is buying insurance company Alleghany Corporation for $11.6 billion, or $848.02 per share in case, the company announced on Monday.

"Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years," Buffett, Berkshire’s CEO, said in a statement.

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The deal, approved by both companies’ boards of directors, "represents a multiple of 1.26 times Alleghany’s book value at December 31, 2021, a 29% premium to Alleghany’s average stock price over the last 30 days and a 16% premium to Alleghany’s 52-week high closing price."

Ticker Security Last Change Change %
BRK.B BERKSHIRE HATHAWAY INC. 273.27 -0.29 -0.11%

The transaction is expected to close in the fourth quarter of 2022, pending approval from Alleghany stockholders and regulators.

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Goldman Sachs & Co. is serving as financial adviser to Alleghany.