All regulatory approvals relating to the proposed acquisition of Alleghany Corporation by Berkshire Hathaway have now been received. The deal is expected to complete on October 19th, 2022, subject to the satisfaction of customary closing conditions.
It was first announced in March that Warren Buffett’s insurance and reinsurance firm had reached an agreement to acquire all of Alleghany’s outstanding shares in an $11.6 billion transaction.
The deal, which was unanimously approved by both Boards of Directors, sees Berkshire acquire Alleghany’s shares for $848.02 in cash, which represents a multiple of 1.26x Alleghany’s book value at December 31st, 2021.
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.
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.
