US drugmaker Perrigo buys Irish Elan for $8.6bn

US drugs company Perrigo is buying Irish biotech firm Elan for $8.6 billion (6.5 billion euros) in cash and shares, the firms said on Monday. The deal is aimed at creating a global group with the strength to pursue expansion, and a new holding company will be based in Ireland. The terms represents a 10.5-percent premium on Elan\'s closing stock price on Friday. Elan had put itself up for sale in June, when it rejected a takeover from US intellectual property investor Royalty Pharma worth as much up to $8.0 billion. After completion of the deal, Perrigo shareholders will own 71 percent of the combined company, while Elan investors will own about 29 percent. \"Perrigo Company ... and Elan Corporation today announced that ... Perrigo and Elan have entered into a definitive agreement under which Elan will be acquired by a new holding company incorporated in Ireland (New Perrigo),\" the firms said in a statement. \"The cash and stock transaction, which is valued at approximately US$8.6 billion ... will create a global healthcare company with an industry-leading growth profile and the geographic scale and scope to continue building a truly differentiated business.\" Elan shareholders will receive $6.25 in cash and 0.07636 shares of New Perrigo for each Elan share, in a deal which values each Elan share at $16.50. \"Through this transaction, Perrigo establishes a diversified platform for further international expansion,\" said Perrigo Chairman and CEO, Joseph C. Papa, in the statement. \"We believe this transaction is compelling for Elan shareholders and fully takes into account the value of Elan\'s assets.\" He added: \"We believe the combination of Perrigo and Elan will create an industry-leading global healthcare company with the balance sheet liquidity and operational structure to accelerate our growth and capitalize on international market opportunities.\" The transaction is expected to be completed by the end of the year.