Berkshire Hathaway to acquire Alleghany in $11.6B all-cash transaction

Berkshire Hathaway (NYSE:BRK.A) and Alleghany (NYSE:Y) have entered into a definitive agreement wherein the former will acquire all outstanding Alleghany shares for $848.02/share in cash.
The transaction, scheduled to close in 4Q22, represents a total equity value of ~$11.6B and a multiple of 1.26 times Alleghany’s book value as of Dec.31, 2021 and a 29% premium to Alleghany’s average stock price over the last 30 days.
Post closure, Alleghany will continue to operate as an independent subsidiary of Berkshire Hathaway.
Under agreement terms, Alleghany may actively solicit and consider alternative acquisition proposals during a 25-day go-shop period.
Last week, Berkshire expanded its Occidental stake to 14.6%.
In early March, SA Contributor Growth at a Good Price stated that Berkshire Hathaway is a safe bet for an uncertain market.
While in the past 6-months the stock has garnered 25% returns for shareholders, it is currently trading close to its 52-week high levels; SA Authors have equal Strong Buy and Buy rating for the stock.