(Reuters) -Warren Buffett’s Berkshire Hathaway Inc said on Monday it plans to purchase Alleghany Corporation in an all-cash deal valued at $11.6 billion.
Berkshire Hathaway has offered $848.02 for each share of Alleghany, a premium of more than 25% to the company’s closing price on Friday.
Founded in 1929 by railroad entrepreneurs Oris and Mantis Van Sweringen, Alleghany operates primarily in property and casualty reinsurance and insurance through subsidiaries and investments.
The deal is expected to close in the fourth quarter of 2022 and Alleghany will operate as an independent unit of Berkshire Hathaway after closing.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Aditya Soni)