Berkshire Hathaway

OMAHA, Neb. (AP) - California regulators say they won't approve the sale of one of Berkshire Hathaway's smaller insurance companies, and they may revoke its state license if the deal goes forward.

The California Department of Insurance said Monday that Applied Underwriters failed to get approval to move its California Insurance Co. subsidiary's headquarters to New Mexico beforehand.

And California hadn't completed its review of the Applied Underwriters sale when the company applied to change the California Insurance Co.'s domicile to New Mexico.

Applied Underwriters didn't respond immediately to questions about the deal Monday.

Berkshire and Applied Underwriters said last week that the $920 million sale to company founder Steve Menzies was completed Oct. 10 after Texas regulators approved it.

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