Exclusive - Teva set to win EU okay for $40.5 bln Allergan deal: sources | Reuters - Firstpost
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Exclusive - Teva set to win EU okay for $40.5 bln Allergan deal: sources | Reuters

Updated: Mar 10, 2016 02:30 IST

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BRUSSELS Teva Pharmaceutical Industries (TEVA.TA) is expected to win EU antitrust approval for its $40.5 billion bid for Allergan's (AGN.N) generics unit after agreeing to sell off some of its products to appease regulators, three people familiar with the matter said on Wednesday.

Teva, the world's biggest generic drugsmaker, will divest some drugs already on the market and others in the pipeline to address competition concerns by the European Commission, the people said. The package includes products from both Teva and Allergan.

Other sources had previously told Reuters that assets worth about $1 billion in the United States, Europe and the Middle East would be sold in order to secure the green light from regulators.

Teva will gain bigger economies of scale, a crucial element in the low-margin generic drugs business, with the deal, the largest in Israel's corporate history.

The Commission, which is scheduled to decide on the case on Thursday, did not reply immediately to an email for comment. Teva declined to comment.

The deal, which requires U.S. approval, has triggered a warning from the American Antitrust Institute that a more concentrated generic market usually comes with higher prices. The think-tank also said divestments may not be enough to ensure competition in the market in a letter to the U.S. Federal Trade Commission in January.

Dublin-based Botox-maker Allergan in turn is to be acquired by Pfizer Inc (PFE.N) in a $160 billion deal creating the world's largest drugmaker.

(Additional reporting by Tova Cohen in Tel Aviv, editing by David Evans)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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