M&A

March 21, 2022

Buffett’s Biggest Deal in Six Years

Warren Buffett’s Berkshire Hathaway announced that it would acquire Alleghany Corp., an insurer, for $11.6 billion. Berkshire already has a strong insurance biz (Geico included), so the Alleghany acquisition will make a nice addition to the conglomerate’s robust portfolio. 💪

The Alleghany deal is also Warren Buffet’s biggest deal to close in six years — Buffet’s conglomerate is paying cash for each share of the insurer, $848.02/share. 💰 💰 Last Friday, shares of Alleghany closed at $676.75. This means Berkshire’s deal will offer the company a +23% premium per share. 

The Berkshire/Alleghany deal could close in Q4 of this year. Buffet commented “Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years.” Alleghany is involved in specialty insurance, property/casualty insurance, and reinsurance. 

Overall, Berkshire and Alleghany shareholders alike seemed enthusiastic about the news. Alleghany shares saw a 25% boost during Monday’s session and Berkshire’s class A stock increased +2.3%.

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Biotech Builds Buyout Momentum

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M&A

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Walgreens Gets The Boot

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In other words, everyone is replaceable. That’s the harsh truth that Walgreens is facing today after discovering Amazon is replacing it in the Dow Jones Industrial Average. 🔀

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A Day Of M&A Madness

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