Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) on Wednesday announced plans to sell some of its operations that are necessary to meet regulatory formalities to purchase its competitor Mylan NV (NASDAQ:MYL).
Teva Pharmaceutical has not revealed the details of operations that are put on sale for the possible acquisition.
In a bid to reduce pressure for additional resources, Teva Pharmaceutical readied $40 million for Milan acquisition. The company is awaiting a response for its bid from Milan.
Meanwhile, Executive Chairman Robert Coury Mylan said that possible deal is likely to attract antitrust move. He further said the deal is without strong foundation.
According to a statement released on Wednesday, Teva Pharmaceutical is seriously negotiating with antitrust authorities to push the deal through before the end of the current year.
According to Reuters, the investors like Paulson and Co are encouraging the Directors of Mylan to consider the deal.
If Teva Pharmaceutical could succeed in pushing the deal through, it would be the second biggest deal in the healthcare industry in the past one year. Previously Actavis plc (NYSE:ACT), a generic drug manufacturer, has acquired Allergan, a Botox Manufacturer, for $66 billion.
Mylan plans to acquire Perrigo Co Plc for $29 billion
In another development, Mylan is planning to purchase the manufacturer of over-the-counter medicines company Perrigo Co Plc, in a deal valued at $29 billion.
But Perrigo Co Plc has rejected the offer of Mylan. The new development offered a sigh of relief for Teva Pharmaceutical because it could easily buy Mylan.
According to Perrigo Co Plc, the deal is much lower considering its immense prospects of further growth. The company further said Mylan has not considered its international distribution platform in offering the deal. Perrigo Co Plc is also of the view that Mylan has not factored its recent buy out Omega Pharma in arriving at the price for the acquisition.
With the latest development, Mylan should prepare to increase the bid for Perrigo Co Plc to avoid itself a possible acquisition target.