Warren Buffett’s Berkshire Hathaway has entered into a $ 11.6 billion deal to acquire real estate insurance company and Alleghany Corp. accidents, the companies announced.
The offer of $ 848.02 per share is 1.26 times higher than its book value on December 31 and is a premium of 29% compared to the average price of the last 30 days.
The agreement allows Alleghany to request and consider alternative takeover bids over a 25-day period.
The $ 11.6 billion acquisition, if successful, would be Berkshire Hathaway’s biggest deal since the acquisition of Precision Controls for $ 34.6 billion in 2016.
A more recent $ 1 billion deal was the acquisition of Dominion Energy’s gas transmission and storage company in 2020, for $ 8 billion.
Berkshire Hathaway recently revealed that it has $ 144 billion in cash.
“These periods have never been pleasant. They are also never permanent,” Buffett said in a recent annual letter to shareholders.
Source: Capital
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