PLIVA takeover approved by regulator

Barr Laboratories has announced it has received approval from the Croatian Financial Services Supervisory Agency (Hanfa) for its $2.3 billion (1.2 billion pounds) takeover of PLIVA, the largest eastern European pharmaceutical company.

This means the Barr, an American company that like PLIVA produces both generic and proprietary pharmaceutical products, can now publish its formal offer in the Croatian press and PLIVA’s own in-house magazine.

For Barr’s takeover bid to succeed, it needs the approval of at least 50 per cent of PLIVA shareholders.

Bruce L Downey, chairman and chief executive officer of Barr, remarked: “We are pleased that Hanfa has approved our $2.3 billion cash tender offer proposal and we have undertaken the formal process of informing all shareholders and will initiate the formal tender process following publication in major Croatian media, as soon as possible.”

“We recognise that the acquisition of PLIVA is a lengthy and well-orchestrated process. We believe that the combination of Barr and PLIVA represents a venture of extraordinary potential and that the benefits of this combination will only increase over time,” he added.

However, Barr’s takeover attempt is by no means guaranteed. Actavis, an Icelandic generic drug manufacturer, has submitted a rival bid. Also submitting a $2.3 billion bid, Actavis said it hoped a merger with PLIVA would create a “global leader” and stated its confidence that its bid represented the best option for PLIVA’s future.

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