Watson to bid €4b for Actavis

 
City A.M. Reporter
US pharma group Watson is expected to unveil a €4.25bn (£3.5bn) takeover bid for Swiss rival Actavis today, in a deal that will put it among the world’s biggest generic drugs suppliers.

Targeting Actavis is a bold move for Watson, whose previous acquisitions include the $1.75bn purchase of Arrow Group in 2009.

The purchase of Actavis would be far larger but could be made to work since there would be scope for significant synergies, including the possible closure of some manufacturing capacity in the United States.

Watson is also looking at offering extra cash if Actavis hits certain earnings targets.