Actavis to be acquired by Watson Pharmaceuticals

Actavis is to be purchased by Watson Pharmaceuticals for 4.25 billion euros (3.45 billion pounds), a deal which will conclude during the fourth quarter of 2012.

The takeover will combine the product portfolios and commercial capabilities of both companies to create the third largest global generics firm in the world, with anticipated pro forma revenue for 2012 of approximately $8 billion (4.95 billion pounds).

Watson believes that the takeover will help it to significantly expand its presence in non-US markets, while Actavis also believes that the complementary growth strategies of the two firms make this move mutually beneficial.

The new-look company will trade under the Watson name and will have more than 17,000 workers globally, operating approximately 20 manufacturing facilities and more than a dozen research and development centres.

Claudio Albrecht, executive chairman and chief executive officer of Actavis, said: "The combination of Watson and Actavis will result in a company of the size required to position itself as a strong player in the generic pharmaceutical industry."

Chairman Bjorgolfur Thor Bjorgolfsson has also welcomed the move, noting that he has chosen to receive his payment for the deal in Watson shares in order to allow him to remain involved with Actavis' operations.