Berkshire Hathaway to Acquire Reinsurer Alleghany for $11.6 Billion

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Warren Buffett’s

Berkshire Hathaway

agreed to buy

Alleghany

shares for $848.02 a share in cash, or a total equity value of about $11.6 billion.

The deal represents a 29% premium to Alleghany’s average stock price over the last 30 days, the companies said in a statement.

Shares of Alleghany, the property-and-casualty reinsurance company, closed Friday at $676.75. They were rising more than 15% in premarket trading Monday to $780.

“Berkshire will be the perfect permanent home forAlleghany, a company that I have closely observed for 60 years,”Buffett said in a statement.

The deal is expected to close in the fourth quarter. It has been approved by the boards of both companies.

Barron’s chose Alleghany as a Stock Pick back in November 2021, calling it a miniature Berkshire Hathaway.

Write to Joe Woelfel at [email protected]