Teva intends to extend an offer to purchase all remaining outstanding shares of Taiyo.
Taiyo has over 550 generic drugs in a variety of therapeutic areas and dosage forms.
Teva president and CEO Shlomo Yanai said with this acquisition they now expect to reach their 2015 target of $1b in sales in Japan ahead of schedule.
"We have great respect for Taiyo’s legacy and its experienced, talented, and dedicated team and look forward to welcoming them into the Teva family," Yanai said.
The transaction will be completed by the end of the third quarter, subject to the approval of Taiyo’s shareholder meeting and customary closing conditions.