Alleghany Corporation has received approval from its stockholders for a pending acquisition by Warren Buffett’s insurance and reinsurance firm, Berkshire Hathaway.
Stockholders approved transaction terms that value Alleghany at $848.02 per share of common stock in cash, with the deal representing a total equity value of approximately $11.6 billion.
All told, 84% of Alleghany’s outstanding common shares, and more than 98% of the votes cast, voted in favour of the merger proposal during a special meeting of stockholders.
This comes after the Boards of both Alleghany and Berkshire unanimously approved the deal alongside its original announcement back in March.
“We are pleased our stockholders have overwhelmingly voted to support this compelling transaction, which delivers significant value to them,” said Joseph P. Brandon, Alleghany’s President and Chief Executive Office (CEO).
“I want to personally thank Alleghany’s employees for their contributions and continued dedication that have made this achievement possible,” he added. “Alleghany looks forward to further building on its success as part of Berkshire Hathaway.”
The merger agreement with Alleghany is expected to expand Berkshire’s significant insurance and reinsurance market interests, and will include Alleghany’s reinsurance entity, TransRe.
It’s still anticipated that the deal will close in the fourth quarter of 2022, with Alleghany to continue to operate as an independent subsidiary of Berkshire Hathaway following completion.
