Billionaire Agnelli Family Adds To Berkshire-Like Portfolio As Exor Buys PartnerRe For $6.9B

Exor , a holding company controlled by the Agnelli family that owns interests in Fiat Chrysler Automotive, CNH Industrial , and Italian Serie A soccer champions Juventus is beginning to look like Berkshire Hathaway . On Monday morning, Exor won a $6.9 billion bid for Bermuda-based insurer PartnerRe , a deal that could give it the financial firepower in coming years to make major new acquisitions in the U.S. and Europe.

Exor prevailed in a hotly contested bidding war for PartnerRe, paying $140.50 a share in cash for the reinsurer, topping a bid from mid-sized insurer Axis Capital Holdings . The sweepstakes for PartnerRe have pushed up the company's shares over 20% year-to-date, but they've also made Exor one of the top performing stocks on European markets over the past year. That's because investors increasingly see Exor as a burgeoning Berkshire Hathaway ; a company led by savvy managers who have the capital and expertise to quickly make large minority and controlling investments when opportunity arises.

Much of Exor's renewed strength, for instance, comes from the transformation of Fiat Chrysler Automotive from a European also-ran and into one of the largest car makers in the world. In the depths of the financial crisis, Fiat's CEO Sergio Marchionne stepped up with a bold deal to pull Chrysler from its government-backstopped bankruptcy to create a transatlantic automotive powerhouse with brands ranging from Alfa Romeo to Chrysler, Dodge, Jeep, Ferrari, and flagship Fiat.

That deal, backed by Exor as a 30% shareholder, paid off handsomely when U.S. auto markets came roaring back from the crisis with record sales. It has even put CEO Marchionne on the offensive for yet another industry changing deal. With PartnerRe, Exor may find it has the financial heft to go after bold new deals. In 2014, PartnerRe reported $5.6 billion in net premiums earned and net investment income of nearly $480 million.

Those types of funds pale in comparison to the insurance float that Warren Buffett of Berkshire Hathaway leans on when making large investments in companies like Coca-Cola , American Express , IBM and Wells Fargo , or working on full-scale M&A such as BNSF, Lubrizol and Kraft Heinz. Nonetheless, they could fuel Exor's ambition, particularly in the automotive and industrial sectors. The company bills itself as a long-term investor in companies in the U.S. and Europe "that benefit from its strong permanent capital base."

As of 2015, FORBES ranked Exor as the fourth largest family-led company in the world, one spot behind Berkshire Hathaway. FORBES also ranks Exor as the 389th company on its most recent list of the 2000 leading companies. The Agnelli's 51% holding in Exor is worth in excess of $5 billion at current prices.

About Monday's deal, Exor CEO John Elkann said, "(t)oday’s agreement is very positive for PartnerRe and EXOR. Under our stable and committed ownership, PartnerRe will continue to develop as a leading independent global reinsurer." PartnerRe will be subject to a 45-day go-shop where the company can solicit topping bids.

If the transaction goes through as agreed, it is expected to close by the first quarter of 2016, subject to shareholder and regulatory approval.

“We have carefully and thoroughly evaluated each development over the past several months, and believe that this thoughtful and deliberate approach was critical to delivering a transaction that represents a significant improvement in the price and terms of EXOR’s original proposal," said PartnerRe chairman Jean-Paul Montupet, in a statement. "Importantly, EXOR is committed to ensuring that the unique culture, brand and business that our dedicated employees have successfully built over the past 20 years remain intact,” he added.

PartnerRe shares were trading higher by 2% at $138.80 in early trading.