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Berkshire’s Acquisition Of Alleghany To End This Week After Receipt Of Regulatory Approvals

Berkshire’s Acquisition Of Alleghany To End This Week After Receipt Of Regulatory Approvals

Berkshire’s Acquisition Of Alleghany To End This Week After Receipt Of Regulatory Approvals

Berkshire’s Acquisition Of Alleghany To End This Week After Receipt Of Regulatory Approvals

Alleghany Corporation’s proposed sale to Berkshire Hathaway has finally been given all necessary regulatory permissions. Subject to the fulfillment of the usual closing requirements, the transaction is anticipated to close on October 19, 2022.

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It was first revealed in March that Warren Buffett’s insurance and reinsurance company had agreed to pay $11.6 billion to acquire all of Alleghany’s outstanding shares.

Alleghany’s shares will be purchased by Berkshire for $848.02 in cash as part of the agreement, which was unanimously approved by both boards of directors. This price is 1.26 times Alleghany’s book value as of December 31, 2021.

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Berkshire’s Acquisition Of Alleghany To End This Week After Receipt Of Regulatory Approvals

In April, Alleghany confirmed that the “go-shop” period under the merger agreement with Berkshire had ended.

A couple of months later, Alleghany announced the receipt of approval from its stockholders for the pending acquisition.

It’s now been revealed by the pair that all regulatory approvals have been received, paving the way for the transaction to close later this week.

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Once the deal closes, it’s understood that Alleghany will continue to operate as an independent subsidiary of Berkshire Hathaway.

Previously, analysts have said that the merger between the two companies could see Alleghany benefit from Berkshire’s financial resources and flexibility, with others describing the two as a perfect fit.


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