Berkshire Hathaway, a real estate investment holdings company, owned by one of the most well renowned investors in the world, has entered into a massive deal this Spring. The company headed by none other than Warren Buffet, has purchased US backed, property-casualty re-insurer Alleghany Corporation. The company, which was founded in 1929 by the Van Sweringen brothers, began as an investment vehicle for railroad gains,but fell into bankruptcy during the Great Depression. However,years later they found much success after pivoting to the insurance industry, with dealings in property,casualty, and surety policies.
The deal, which is an all cash offer for $11.6 billion dollars, will add a major revenue stream for the highly successful real estate and investment mogul. Set to be fully executed near the last quarter of 2022, this marks the first of its nature in over two years. With a share price of $844.60, it puts Alleghany’s valuation at nearly $11 billion, which is an increase of more than 24% since the offer was made earlier today. For Berkshire, it’s another huge win as shareholders look forward to another well planned investment call for the company.