Teva Ready to Divest Operations to Win Regulatory Nod for Mylan Buy

Send in e-mailSend in e-mail
Send in e-mailSend in e-mail
Teva’s Jerusalem headquarters.Credit: Tess Scheflan / Jini

REUTERS - Teva Pharmaceutical Industries Ltd said on Wednesday it could "promptly" divest some operations if necessary to obtain regulatory clearance for its proposed takeover of smaller rival Mylan NV.

Teva unveiled an unsolicited $40 billion bid on Tuesday for Mylan in an attempt to ease pressure for new revenue sources.

Mylan has yet to publicly respond to Teva's bid, but last week Mylan Executive Chairman Robert Coury responded to reports of a potential deal by concluding that such a combination would attract antitrust scrutiny and was "without sound industrial logic or cultural fit."

Teva plans to work with antitrust authorities and expects that the proposed transaction can be completed by the end of 2015, it said in a statement on Wednesday.

Jerusalem-based Teva did not say which operations it could be ready to divest.

Reuters has reported that some of Mylan's top investors, including Paulson and Co, are encouraging its board of directors to consider Teva's proposal.

Meanwhile, Canonsburg, Pennsylvania-based Mylan is pursuing its own $29 billion unsolicited bid for Perrigo Co Plc, which the maker of over-the-counter medicines spurned on Tuesday.

A Teva-Mylan deal would be the second-largest healthcare transaction in the last 12 months, following generic drugmaker Actavis Plc's $66 billion purchase of Botox maker Allergan.

Click the alert icon to follow topics: