Takeda Pharmaceutical, Japan's largest drugmaker, said it would buy privately held Swiss rival Nycomed for 9.6 billion euros ($13.6bn) as it seeks to expand in Europe and emerging markets.
The deal marks the biggest overseas purchase by a Japanese company since Japan Tobacco paid $19bn (£11bn) for Britain's Gallaher and is Takeda's second major deal after purchasing U.S. cancer specialist Millennium Pharmaceuticals for $8.8bn in 2008.
The purchase would offer Takeda access to lung-disease drug Daxas, just approved in the United States, and a portfolio of over-the-counter consumer products.
Takeda, known for its top-selling diabetes drug Actos, will finance part of the transaction with a 600-700 billion yen loan. The deal had been expected after being flagged by financial sources last week.
Nycomed is majority owned by four private equity firms, led by Nordic Capital with 41 per cent. Credit Suisse's DLJ Merchant Banking has 25.6 percent, Coller International Partners 9.7 per cent and Avista 8.9 per cent.
City A.M. Reporter