Alleghany gives nod to Buffett bid, heads to Berkshire Hathaway stable

Shareholders at  Alleghany Corporation have approved plans to be shuffled into Warren Buffett's insurance empire at Berkshire Hathaway, giving the nod to an $11.6 billion all-cash bid first announced in March.

Roughly 98% of votes present at the EGM supported the move, representing some 84% of  Allegheny total common shares, Alleghany said following the meeting.

The transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions and regulatory approvals.

Alleghany's CEO Joseph Brandon called it a "compelling transaction" delivering "significant value" to shareholders. "Alleghany looks forward to further building on its success as part of Berkshire Hathaway."

Buffett 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. Alleghany opened the floor for higher offers, but the Buffett bid was not beaten.

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