Berkshire Hathaway-Alleghany’s $11.6bn deal gets go-ahead

Warren Buffett’s  Berkshire Hathaway and  Alleghany Corporation have secured all regulatory approvals relating to the proposed $11.6 billion all-cash acquisition  first announced in March.

Buffett’s Berkshire had offered $11.6 billion for the rival insurer, including its global reinsurer TransRe, wholesale specialty insurers RSUI, and CapSpecialty, an underwriter of specialty casualty and surety insurance.

During the go-shop period, Alleghany spoke to a number of potential buyers seeking alternative acquisition offers but  failed to secure more attractive bids than the one made by Buffett.

The stockholders of  Alleghany previously voted to approve and adopt the Agreement and Plan of Merger, dated as of March 20, 2022, at a special meeting held on June 9, 2022.

The completion of the proposed transaction is expected to occur on October 19, 2022, subject to the satisfaction of customary closing conditions.

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