PLIVA: 90 per cent of shares now owned by Barr

PLIVA, the Croatian pharmaceutical manufacturer of generic and proprietary drugs, is a step closer to successfully completing its merger with Barr Laboratories as more than 90 per cent of its shares now belong to the American company.

Barr came out top in a bidding war with Actavis for PLIVA, which is listed on the London Stock Exchange, eventually paying $2.5 billion (1.34 billion pounds), promising to install new European headquarters in Croatia in the process.

The companies expect to complete the transaction on October 25th, as the terms of the offer dictate that Barr can close its formal tender offer after 50 per cent of PLIVA’s shareholder’s accept.

Bruce L Downey, Barr’s chairman and chief executive officer, remarked: “Our new, combined company will have revenues of approximately $2.4 billion, a strong balance sheet and a strong cash position that will enable it to pay down debt related to the acquisition, as well as provide sufficient capital to fund expanded investment in generic and proprietary activities in Croatia, and throughout Europe and the United States.”

He added that Barr was “honoured” that PLIVA shareholders recognised the potential of “two great companies”.

The acquisition of PLIVA will create the world’s third-largest pharmaceutical company and allow Barr to expand into Europe.

PLIVA also runs operations in the UK, where it claims to be one of the fastest-growing pharmaceutical presences.