Warren Buffett’s Berkshire Hathaway agrees to buy insurance company Alleghany for $11.6 billion

The man is making moves.

Alleghany will be bought by Warren Buffet's company for $11.6 billion, or $848.02 per share, in cash. The deal is worth a multiple of 1.26 times Alleghany's book value at December 31, 2021, and a 16% premium to Alleghany's average stock price. The deal is expected to close in the fourth quarter.

Alleghany shares were up more than 15% in the premarket.

Alleghany will be the perfect permanent home for the company, which I have closely observed for 60 years, according to a statement from the chairman and CEO.

Alleghany CEO Joseph Brandon hailed the deal as a terrific transaction for Alleghany's owners, businesses, customers, and employees.

The deal may be a surprise to some shareholders, as Charlie Munger and Warren Buffet have expressed frustration in their search for a big acquisition. In his annual letter to shareholders, Buffett said that he and Munger did not find much in the way of large acquisitions.

It is true that $11.6 billion is a small number when compared with the amount of cash held by the company.

This is the largest full acquisition in a while, although the amount being spent is relatively small and doesn't constitute the type of deal that has been done before.

This is breaking news. You can check back for updates.