U.S. Drug Giant Perrigo Buys Ireland’s Elan for $8.65B

prescription drugsIrish drug maker Elan (ELN) has found a suitor it can live with.

The company, which recently fended off several hostile takeover bids from Royal Pharma has agreed to be acquired by Perrigo (PRGO), the largest maker of generic drugs in the U.S., for $8.6 billion in cash and stock. The deal puts an 11% premium on Elan’s Friday closing price, the Associated Press notes.

Predictably, shares of Elan surged more than 5% in Monday morning trading, while shares of Perrigo fell back more than 4%.

Under the deal, Perrigo will relocated its tax residence from Michigan to Ireland in order to take advantage of the country’s low corporate tax rates.

If both Irish and American regulators approve the deal, which would giver Perrigo investors control of about 71% of the combined company, the merger is expected to be completed by the end of the year.

Article printed from InvestorPlace Media, https://investorplace.com/2013/07/u-s-drug-giant-perrigo-buys-irelands-elan-for-8-65b/.

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