OMAHA, Neb. (AP) — 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 including brands like Geico, which specializes in auto insurance. 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.