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Berkshire to Acquire Alleghany Corporation for $848.02 Per Share in $11.6 Billion

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Berkshire Hathaway and Alleghany Corporation today jointly announced they have entered into a definitive agreement under which Berkshire Hathaway will acquire all outstanding Alleghany shares for $848.02 per share in cash. The transaction, which was unanimously approved by both Boards of Directors, represents a total equity value of approximately $11.6 billion. The acquisition price represents a multiple of 1.26 times Alleghany’s book value at December 31, 2021, a 29% premium to Alleghany’s average stock price over the last 30 days and a 16% premium to Alleghany’s 52-week high closing price.

“Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed
for 60 years. Throughout 85 years the Kirby family has created a business that has many similarities to
Berkshire Hathaway. I am particularly delighted that I will once again work together with my long-time
friend, Joe Brandon.” said Warren E. Buffett, Berkshire Hathaway’s Chairman and Chief Executive

“My family and I have been significant shareholders of Alleghany for over 85 years and are proud that
our ownership will culminate through this compelling transaction with Berkshire Hathaway. Not only
does this deal provide substantial and certain value to stockholders, but it provides a rare opportunity to
join forces with a like-minded and highly respected investor and business leader,” said Jefferson W.
Kirby, Chair of the Alleghany Board of Directors. “Berkshire Hathaway’s support, resources, and
expertise will provide added benefits and opportunities for Alleghany and its operating businesses for
many years to come.”

“This is a terrific transaction for Alleghany’s owners, businesses, customers, and employees,” said
Joseph P. Brandon, Alleghany’s President and Chief Executive Officer. “The value of this transaction
reflects the quality of our franchises and is the product of the hard work, persistence, and determination
of the Alleghany team over decades. As part of Berkshire Hathaway, which epitomizes our long-term
management philosophy, each of Alleghany’s businesses will be exceptionally well positioned to serve
its clients and achieve its full potential.”

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