U.S. generic drugmaker Perrigo agreed to buy Elan for $8.6 billion on Monday, ending a takeover battle over the Irish company which put itself up for sale last month.

Michigan-based Perrigo, which manufactures over-the-counter pharmaceutical products for the store brand market, will pay $6.25 per share in cash and $10.25 per share in stock, based on Friday's closing price.

(Reporting by Padraic Halpin; Editing by Sam Cage)