US-based Mylan has made an offer to acquire Irish over-the-counter (OTC) and nutritional products maker Perrigo for around $29bn in a cash and stock deal.
An unsolicited and indicative proposal from Mylan regarding a possible offer for the company was sent to Perrigo.
As per terms of the non-binding proposal, Mylan will pay $205 in a combination of cash and stock for each Perrigo share, representing more than 25% premium to its trading price on 3 April.
Mylan executive chairman Robert Coury said: "This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination.
"This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies.
"We look forward in the weeks ahead to working with them to capitalise on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry."
According to Mylan, the combination of complementary businesses will create a firm with critical mass in specialty brands, generics, OTC, and nutritional products.
Perrigo also supplies infant formulas for the store brand market and healthcare products in North America, Europe, and Australia, as well as Israel and China.
At the end of March, Perrigo completed the acquisition of Belgium’s OTC drugmaker Omega Pharma for around €3.8bn ($4.5bn).
Image: Photograph of the exterior of Perrigo’s Eastern Avenue Office. Photo: courtesy of Perrigo Company.