$40bn Teva generic deal awaits antitrust approval
Teva’s $40 billion deal to buy Allergan’s generics business could close at “any time” – but the companies have extended a deadline for completing the transaction until October to allow more time for US antitrust approval.
During a conference call with analysts, Teva CEO Erez Vigodman said the Israel-based firm expected the deal to close “any time now”.
Allergan said in a filing with the US financial regulator that the companies amended the sale agreement to extend the deadline to the sale agreement by three months into late October.
The companies agreed the deal late last year and was originally slated to close during the first quarter.
Allergan is also to exclude two products, Actonel and Carafate from the sale and will reduce the cash paid by Teva by $221m.
A spokesperson for Allergan said the extension allowed the deal to close later than 26 July, a year after the companies signed their agreement.
But he added: “The matter is now in the (Federal Trade Commission’s) hands and we believe that the FTC clearance decision is imminent.”
Under the terms of the original deal, Allergan was set to receive $33.75 billion in cash and shares in Teva valued at the time around $6.75 billion.
This represented a 10% stake in Teva, with the final volume decided by an average price around closing.
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