WASHINGTON (dpa-AFX) - Generic drug maker Watson Pharmaceuticals Inc. (WPI) announced that the Federal Trade Commission or FTC has voted to approve Watson's acquisition of the privately held Actavis group of companies.
The unanimous vote in support of the transaction followed Watson's agreement to a proposed consent order, pursuant to which Watson has agreed to divest certain products as a condition to obtaining FTC approval.
Te companies have now obtained all regulatory approvals required to close the transaction. Accordingly, the companies expect to consummate the acquisition in late October or early November.
As per the terms of the consent order with the FTC, Watson and Actavis have agreed to divest a number of marketed and pipeline products to Par Pharmaceutical Companies, Inc. and Sandoz.
In April, Watson had said it agreed to acquire privately-held Swiss rival Actavis Group for an upfront payment of 4.25 billion euros or $5.6 billion. Actavis will also receive additional consideration of up to 250 million euros in the form of up to 5.5 million shares of Watson common stock in 2013 upon achievement of certain negotiated 2012 performance targets.
Zug-based Actavis was taken private in 2007 by Icelandic tycoon Björgólfur Thor Björgolfsson in a deal that gave the business an enterprise value of 4.8 billion euros. Actavis had 2011 revenues of about $2.5 billion.
Copyright RTT News/dpa-AFX