Corporate Finance

Teva-Mylan : for a few $100bn more

The merger between the two pharmas should merely give birth to a group worth $100bn.

The merger between the two pharmas should merely give birth to a group worth $100bn.


Since the beginning of 2015, the message of international M&A is pretty clear : nobody is going to stop the big healthcare corporations to consolidate their sector. Teva-Mylan’s merger is nothing but a new example of this trend which carried a global amount of transactions of $95,3bn during the first quarter. Teva, the world leader of generic drugs, proposed $40bn to absorb its counterpart Mylan. The offer, $82 per share, is fairly halved between cash and equity. This transaction would make history for a few reasons. First, it would create a super player whose market capitalization would hit $100bn and the turnover $30bn. It would also constitute the biggest healthcare deal among big ones already. Finally, Teva would become the first Israeli company to conclude such an important cross-border M&A operation. If the different competition authorities give their consent to the merger, the new group will be able to aim a projected growth of 30 % three years post-operation. Meanwhile, no comment was made on the merged company’s future location.

F. S.

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