US drugmaker Mylan is making a hostile bid for Irish rival Perrigo, in a sign that the pharmaceutical industry's wave of M&A activity is far from over.
On 14 September, an estimated $27.1bn (£17.6bn) will be offered to Perrigo shareholders in the form of cash and stock. The company manufactures private label over-the-counter medicines, and Mylan hopes the acquisition will add a broad range of new drugs to its collection.
Mylan first tried to engage the Dublin-based company's board in private talks four months ago, but an offer made in April was rejected by Perrigo on the grounds that it was too low.
Mylan's chairman Robert Coury said in a public letter to Joseph Papa, chief executive of Perrigo:
First and foremost, Perrigo shareholders should understand that the final outcome rests solely with them, not Perrigo's management or board. You and your board are now able to stop the combination.
If they choose to accept the offer, Perrigo investors will receive $75 in cash and 2.3 Mylan shares for each Perrigo share acquired. Just over 50 per cent of shareholders must be in favour for the deal to go ahead.
Following the news, shares in NYSE-listed Perrigo went up 1.1 per cent to $180.73, while shares in Nasdaq-listed Mylan increased 0.6 per cent in value.
The offer comes just one month after a similar hostile bid was made by London-listed Shire for US biotech firm Baxatla. Shareholders are currently deciding whether to accept the $30bn (£19bn) offer.