By Razak Musah Baba
Teva Pharmaceutical Industries Ltd. on Monday said it would buy
Allergan PLC's generics unit for $40.5 billion in cash and stock in
a deal that will vault the Israeli company into the top ranks of
global drug makers.
Teva, the world's largest generic-drug company by sales, said
Allergan would receive $33.75 billion in cash and shares in Teva
valued at $6.75 billion, giving it a 10% stake in Teva.
"This transaction delivers on Teva's strategic objectives in
both generics and specialty," Teva Chief Executive Erez Vigodman
said.
Teva said it expected the acquisition of Allergan Generics to
contribute $2.7 billion in earnings before tax depreciation and
amortization, or Ebitda, in 2016, excluding synergies.
The company added that the transaction was unanimously approved
by the boards of both Teva and Allergan and is expected to close in
the first quarter of 2016.
In a separate statement, Teva said that as a result of the
Allergan deal it would drop its bid for rival Mylan NV.
Write to Razak Musah Baba at Razak.Baba@wsj.com
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