Berkshire’s $11.6B Alleghany deal expands insurance business

By MICHELLE CHAPMAN and JOSH FUNK
AP Business Writers

Warren Buffett’s Berkshire Hathaway is buying the insurance company Alleghany in a deal valued at approximately $11.6 billion. The acquisition will expand Berkshire’s already considerable insurance holdings that include brands like Geico auto insurance, and put some of Berkshire’s nearly $147 billion in cash to work. Berkshire said Monday that it will pay $848.02 in cash for each outstanding share of Alleghany, based in New York City. It will operate as an independent subsidiary of Berkshire Hathaway after the deal closes. It has 25 days to actively solicit and consider alternative acquisition proposals under a “go-shop” provision.