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Berkshire Hathaway to Buy Insurer Alleghany for $11.6 Billion

 Berkshire Hathaway to Buy Insurer Alleghany for $eleven.6 Billion

Warren Buffett’s funding vehicle expects to complete the transaction via the end of the yr

Warren Buffett’s Berkshire Hathaway said the deal consists of a 25-day period below which Alleghany can are seeking a better provide.

March 21, 2022 6:04 am ET

Berkshire Hathaway Inc. BRK.B -zero.74% on Monday stated it agreed to buy insurer Alleghany Corp. Y -zero.08% for approximately $eleven.6 billion in coins in a deal that bolsters the insurance arm of billionaire Warren Buffett’s investment vehicle.


Berkshire said it might pay $848.02 a proportion for Alleghany, a top rate of approximately 25% to Friday’s closing price of $676.Seventy five and a multiple of 1.26 times the New York-based business enterprise’s book fee at the quit of 2021.


Berkshire, whose operations consist of an array of agencies along with insurer Geico, stated it expects to complete the purchase by means of the end of the year.


“Berkshire may be the appropriate permanent domestic for Alleghany, a employer that I even have carefully determined for 60 years,” Mr. Buffett stated in a statement Monday.


Berkshire, based in Omaha, Neb., stated the deal includes a 25-day “move-store” period under which Alleghany can are seeking for a better provide.


Write to Colin Kellaher at colin.Kellaher@wsj.Com


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