Mylan to Buy Swedish Drugmaker Meda in $9.9 Billion Deal

Industries Reuters

Generic drugmaker Mylan NV said it would buy Sweden's Meda AB in a deal valued at $9.9 billion, including debt.

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The move comes three months after Mylan ditched its seven-month long pursuit of smaller rival Perrigo.

Netherlands-based Mylan said the offer, recommended by Meda's board, was for 165 Swedish crowns per share, and includes 48.2 billion Swedish crowns ($5.73 billion) in cash.

Meda's two largest shareholders, who own about 30 percent of the specialty pharmaceutical's outstanding shares, have undertaken to accept the offer, Mylan added.

The transaction, expected to be completed by the third quarter, is expected to immediately add to Mylan earnings.

Separately, Mylan also reported its fourth-quarter results.

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Net income attributable to shareholders rose to $194.6 million, or 38 cents per share, from $192.8 million, or 47 cents per share.

On a per-share basis, profit fell to 38 cents per share from 47 cents per share a year earlier due to an increase in the number of shares outstanding in the latest quarter.

Excluding special items, Mylan earned $1.22 per share, below the average analyst estimate of $1.28 per share.

Revenue rose about 20 percent to about $2.5 billion. Analysts were expecting $2.70 billion, according to Thomson Reuters I/B/E/S. ($1 = 8.4069 Swedish crowns)

(Reporting by Natalie Grover in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva)