Bulletin: Berkshire Hathaway Inc. Reduces Cash Pile With Announced Alleghany Acquisition

NEW YORK (S&P Global Ratings) March 21, 2022--S&P Global Ratings today said Berkshire Hathaway Inc.'s (AA/Stable/A-1+) announced acquisition of Alleghany Corp. for approximately $11.6 billion, in an all-cash deal, has no immediate impact on the ratings. The acquisition price represents 1.26 times Alleghany's book value at year-end 2021 and is an opportunity for the company to reduce its almost $150 billion cash stock pile. Subject to shareholders and regulatory approval, the transaction is expected to close in the fourth quarter of 2022. It is the largest acquisition for Berkshire Hathaway since the company completed the Precision Castparts acquisition in 2016. Insurance and investments remain one of the largest contributors to both revenue and earnings for Berkshire Hathaway, and the Alleghany

...March 21, 2022 NEW YORK (S&P Global Ratings) March 21, 2022--S&P Global Ratings today said Berkshire Hathaway Inc.'s (##/Stable/A-1+) announced acquisition of Alleghany Corp. for approximately $11.6 billion, in an all-cash deal, has no immediate impact on the ratings. The acquisition price represents 1.26 times Alleghany's book value at year-end 2021 and is an opportunity for the company to reduce its almost $150 billion cash stock pile. Subject to shareholders and regulatory approval, the transaction is expected to close in the fourth quarter of 2022. It is the largest acquisition for Berkshire Hathaway since the company completed the Precision Castparts acquisition in 2016. Insurance and investments remain one of the largest contributors to both revenue and earnings for Berkshire Hathaway, and the Alleghany acquisition will add almost $8.5 billion in gross premiums written--representing approximately 11% of $80 billion pro forma premiums written--diversified between primary and reinsurance...

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