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Teva says closing buy of Allergan’s generics biz may take longer

pharmafile | March 16, 2016 | News story | Business Services, Research and Development, Sales and Marketing |ย ย Allergan, M&A, MA, Pfizer, Tevaย 

Israel-based Teva Pharmaceuticals Industries (NYSE: TEVA) said its $40.5 billion acquisition of Allergan’s generics business will take longer than expected, as the company awaits US regulatory nod. 

The company said completing the acquisition could take as long as June 2016, based upon its current estimate of the timing to obtain clearance from the United States Federal Trade Commission. 

The delay in may mean the company will face tougher regulatory screening and more divestitures.

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Teva previously expected the deal to close as early as the end of the first quarter of 2016. The company has received regulatory approval from the European Commission for its acquisition of Actavis Generics, subject to certain divestitures. 

In July, the company agreed to buy Actavis Generics for $40.5 billion in a cash-and-stock deal catapulting Teva one of the top ranking drumakes in the world.

As a result of the delay, Allerganโ€™s much larger tie-up with Pfizer (NYSE: PFE) may also be pushed back. In November last year the companies agreed on a historic merger deal worth more than $150 billion that would create the worldโ€™s biggest drug firm.

Shares in Teva closed down 3.3% to $57.13 Tuesday on the New York Stock Exchange.  

Anjali Shukla

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