PLIVA board backs Barr takeover

Barr Laboratories are a step closer to acquiring PLIVA after the Croatian pharmaceutical company’s board recommended Barr’s offer to its shareholders.

Following regulatory clearance in both the US and Croatia, PLIVA shareholders can now choose to accept or decline Barr’s $2.3 billion offer, which requires at least 50 per cent of PLIVA shares to be tendered to Barr in order for the takeover to conclude.

And although Actavis, the Icelandic generics company, has yet to formally publish its offer, Deutsche Bank, the independent financial advisor to PLIVA, has said Barr’s offer “reflects fair value”.

The PLIVA supervisory board claims Barr’s offer represents an “attractive long-term development prospect” because Barr intends to move its European headquarters to Croatia, while keeping the PLIVA brand separate.

A statement read: “[Barr] has highlighted its readiness to financially support PLIVA’s investments in research, development and production capacities as well as stated that it deems that the engagement of PLIVA’s employees and management is crucial for realisation of its business strategy.”

The merger could have an effect on the UK market, with PLIVA describing itself as one of the fastest-growing pharmaceutical companies in the country.

Barr has said it intends to expand PLIVA’s production facilities further, although Actavis has said its offer represents the best “synergies” between the two companies in an attempt to create the world’s third-largest pharmaceutical manufacturer.

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