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news.Generic drug-maker Mylan has entered into a definitive agreement to acquire Abbott's non-US developed markets specialty and branded generics business in an all-stock transaction of $5.3bn.
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As part of the deal, Abbott will carve out the assets and transfer them to a new public company, New Mylan, organised in the Netherlands.
After transfer of assets, Mylan will merge with a wholly owned subsidiary of New Mylan, which will become the parent company of Mylan.
The new public company called Mylan NV will be led by the existing Mylan leadership team and will be headquartered in Pittsburgh.
The deal will see Abbott receive 105 million shares of New Mylan upon closing, resulting in Mylan shareholders owning approximately 79% of New Mylan and Abbott indirectly owning about 21% of the new company.
According to Mylan, it is acquiring the assets on a debt-free basis, including a portfolio of more than 100 specialty and branded generic pharmaceutical products in five therapeutic areas, and include several patent protected, novel and/or hard-to-manufacture products with continued growth potential.
The transaction, unanimously approved by Mylan’s board of directors, is expected to close in the first quarter of 2015 subject to certain closing conditions, including regulatory clearances and approval by Mylan’s shareholders.