Teva makes USD 40-bn takeover bid for Mylan

In one of the biggest pharmaceutical takeover bids, Israel-based Teva today offered to acquire US-based Mylan for USD 40 billion in cash and stock to create a generic drug powerhouse to compete with rivals such as Sun Pharma from India.
Teva has made an offer to acquire all outstanding shares of Mylan at at USD 82 per share -- 50 per cent in cash and another 50 per cent in stock.
The combined Teva and Mylan would have revenue of approximately USD 30 billion, consolidating Teva's position as the world's largest generic drug maker.
Mylan is currently ranked second in generic market, but both the companies are facing stiff competition with the growing might of entities like Sun Pharma, which has become the world's fifth largest generic drugmaker after its Ranbaxy acquisition.

Sun Pharma has also expanded its presence in markets across the world mostly through acquisitions, including that of a majority control in Taro Pharmaceuticals that had begun operations in Isarel and later expanded into North America.
Intestinally, Mylan has Indian-origin Rajiv Malik as its President and Executive Director, who led the company's commercial launch in India in 2012 and had also served with Ranbaxy in the past.

"The proposal to acquire Mylan was unanimously approved and strongly supported by the Teva Board. Teva's strategy has been to aggressively pursue growth opportunities that advance our goal of being a stronger, more diversified organisation with scale and resources to drive value across our business," Teva Chairman Yitzhak Peterburg said in a statement.

The proposed combination advances these objectives and would result in significant and sustained value creation for Teva stockholders, he added.
The offer, however, is not binding.
Teva had revenues of USD 20.3 billion in 2014.
The company said its proposal also provided Mylan stockholders with "a more attractive alternative to Mylan's proposed acquisition of Perrigo Company plc, as announced on April 8, 2015, as well as to Mylan on a standalone basis".
"We have long respected Mylan's business, and we are confident that Mylan's Board of Directors and stockholders will agree that our proposal represents a significantly more attractive alternative for Mylan and its stockholders than Mylan's proposed acquisition of Perrigo," Teva President and CEO Erez Vigodman said.

Teva said its proposal to Mylan represented a "37.7 per cent premium to the stock price of Mylan on April 7, 2015, which is the last day of trading prior to Mylan's press release regarding its unsolicited proposal for Perrigo".
While Mylan did not immediately comment on the offer, last week reaction to speculations over such a proposal, Mylan Executive Chairman Robert J Coury had stated: "We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit.