A spate of mega-mergers continued apace yesterday as generic drugmaker Mylan announced that it had offered to buy Perrigo for about $29bn (£19.43bn) in cash and stock.
The move would significantly beef up Mylan’s offerings of over-the-counter consumer products.
Mylan said it proposed to acquire the Ireland-based company for $205 per share, representing more than a 25 per cent premium over Perrigo’s 3 April closing price, the last trading day prior to the Mylan proposal.
Perrigo confirmed it had received the bid, which it described as “unsolicited”. It added that the board would meet to discuss the proposal, it said.
Mylan executive chairman Robert Coury said the two companies have had several discussions about a proposed merger. In an 6 April letter to Perrigo chief executive Joseph Papa, Coury called a deal a natural fit that would create a firm with about $15bn in sales.
“As you and I have discussed on a number of occasions over the past few years, a combination of Mylan and Perrigo offers clear and compelling strategic and financial benefits,” Coury wrote. “This is the right time for our two companies to move forward together, and Mylan and our Board are firmly committed to making this combination a reality.”
Coury offered to make Papa co-chairman of the combined company, with Mylan CEO Heather Bresch and president Rajiv Malik keeping their roles.
“What will be interesting to see is if we end up in a bidding war,” said Morningstar analyst Michael Waterhouse.