Warren Buffett, chairman and CEO of Berkshire Hathaway
Saul Loeb/AFP via Getty Images
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]
