JERUSALEM (JTA) – Teva Pharmaceutical Industries Ltd. will buy Allergan’s generic drug unit for $40.5 billion in what is believed to be the largest acquisition by an Israeli company.
Both companies announced the transaction on Monday. The deal, in cash and stock, will close in the first quarter of 2016, according to Teva, and bolster the Jerusalem-based firm’s standing as the largest generic drug company in the world.
The acquisition will “provide patients and consumers across the globe with better access to high quality affordable medicines,” Teva said in a statement.
Allergan, which is based in Dublin, Ireland, said in a statement that it would obtain a minority equity interest in Teva.
“Teva presented an offer at a very compelling valuation that reflects and recognizes the significant value that our global generics team has generated in creating and managing a world-class generics business,” Allergan said.
Teva said it would now drop its $40 billion-plus takeover offer for pharmaceuticals company Mylan N.V., which had been rejected.
Founded in 1901 as a medications importer, Teva began manufacturing drugs in the 1930s.