American biopharmaceutical company AbbVie has agreed to buy global pharmaceutical company Allergan in a $63 billion cash and stock deal.
A statement released by AbbVie stated that the new acquisition will provide scale and profitability to the company’s growth platform and will create substantial value for shareholders of both companies. It is reported, that although the two company’s portfolios do not overlap, the synergies will come from the distribution leverage, research and development departments and portfolio diversification.
Brent Saunders, chairman and CEO at Allergan commented, “Our combined company will have the opportunity to make even bigger contributions to global health than either can alone and will create substantial value for shareholders of both companies.”
Richard Gonzalez, chairman and chief executive officer at AbbVie added, “This is a transformational transaction for both companies and achieves unique and complementary strategic objectives. The combination of AbbVie and Allergan increases our ability to continue to deliver on our mission to patients and shareholders. With our enhanced growth platform to fuel industry-leading growth, this strategy allows us to diversify AbbVie's business while sustaining our focus on innovative science and the advancement of our industry-leading pipeline well into the future.”
It is reported that Allergan shareholders will receive 0.8660 of AbbVie shares and $120.30 in cash for each share that they hold. The deal is expected to close in early 2020 and is subject to regulatory and Allergan’s shareholder approvals.