Berkshire Hathaway will acquire all outstanding Alleghany shares for US$848.02 per share in cash
Buffett is diving deeper into the world of insurance with the Alleghany deal, an industry that has been key to the growth of Berkshire into a conglomerate with a market value of more than US$750 billion. With Alleghany, Berkshire gains a large property-casualty insurer that also has reinsurance operations through its Transatlantic Holdings Inc. unit. The business is run by Joseph Brandon, who previously used to be chief executive officer of a Berkshire insurer, General Re.
“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years,” Berkshire CEO Buffett said in the statement. “I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon.” The transaction is Berkshire’s largest since its 2016 acquisition of Precision Castparts Corp., according to data compiled by Bloomberg. That deal was valued at US$37.2 billion, including debt.The Omaha, Nebraska-based billionaire has been seeking ways to put some of his conglomerate’s almost US$150 billion pile of cash to work in higher-returning assets, but has struggled to find attractive options given high valuations.
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