Drug firm Mylan offers nearly $30bn for rival Perrigo

Generic drugs Image copyright Thinkstock
Image caption The merged company could have a market value of nearly $60bn

Generic drug firm Mylan has offered to buy over-the-counter rival Perrigo in a cash and stock deal that would create a pharmaceutical powerhouse.

The global drug firm is offering nearly $30bn (£20bn; €28bn) for Ireland-based Perrigo, which makes medications including nasal sprays.

Mylan said the businesses would complement each other, and the deal would produce a company with critical mass in speciality brands.

Perrigo confirmed the approach.

"This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies," said Mylan's executive chairman Robert J. Coury.

Mylan says it wants to buy Perrigo for $205 a share, or $28.86bn.

This potential mega deal could create a company with a stock market value of nearly $60bn.

Both companies have already been on the acquisition trail.

Last year, Mylan bought part of Abbott Laboratories' generic drugs business for $5.3bn, and Perrigo spent $4.5bn buying Omega Pharma.

News of the potential deal pushed Perrigo's shares up nearly 20% in afternoon trading on the New York Stock Exchange, while Mylan's share price leapt 14%.

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