Two weeks after Mylan N.V.'s (Nasdaq: MYL; TASE: MYL) attempt at a hostile takeover of Perrigo Company (NYSE:PRGO; TASE:PRGO) failed, Bloomberg reports that the two companies are likely to compete with each other for acquisitions.
Among others, Bloomberg mentioned US company Impax Laboratories, listed on Nasdaq at a $3.2 billion market cap, and German company Stada, listed at a €2.2 billion market cap, as possible acquisition targets. Another acquisition candidate mentioned was Taro Pharmaceutical Industries Ltd. (NYSE: TARO), whose market cap is $6.1 billion. The chances of this deal are poorer, because Taro's controlling shareholder, Indian company Sun Pharmaceutical Industries, seems in no hurry to sell it. Sun owns 69% of Taro, after winning a long legal battle with the families of the Taro founders five years ago. Sun has since added to its stake in Taro, and tried to buy all of the public's holdings in the company in order to make it a fully owned subsidiary. The offer to purchase was canceled after Taro's share price soared above the price Sun was willing to pay.
Mylan tried to acquire Perigo, led by CEO Joseph Papa, in a $26 billion deal, but only 40% of Perrigo's shareholders accepted the offer to purchase, short of the required 50%. When the bid failed, Mylan chairman Robert Coury made it clear that his company would make other acquisitions, saying, “With one of the strongest balance sheets in our industry... as well as our well-recognized prowess in identifying attractive external assets, we are well-positioned to quickly execute on the next strategic, value-enhancing opportunities for our business, some of which we have already identified." Perrigo is known as a company that also grows by acquiring companies of various sizes. For example, it announced this week its acquisitions of rights to market a drug for treatment of Crohn's disease in a $380 million deal.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2015
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