Teva says Allergan deal to close 'any time', expects U.S. antitrust clearance

Wed Jul 13, 2016 11:35am EDT
 
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By Caroline Humer and Tova Cohen

NEW YORK/TEL AVIV (Reuters) - Teva Pharmaceutical Industries Ltd (TEVA.TA: Quote) said on Wednesday it expected its $40 billion deal to buy Allergan Plc's (AGN.N: Quote) generics business to close "at any time," even as the companies extended the deadline for completing the transaction to October to allow more time for the U.S. antitrust review.

The deal was announced more than a year ago and had been expected to wrap up last month, but it has taken longer as the companies have arranged sales of more drugs than anticipated to clear the antitrust regulators.

"We expect the closing of the ... generics deal at any time now," Teva Chief Executive Officer Erez Vigodman said during a conference call with analysts to discuss the Israeli drugmaker's financial outlook.

The deal closing is contingent on clearance from the U.S. Federal Trade Commission (FTC), the antitrust regulator reviewing the deal, which the companies said they expect at any time. After it clears that hurdle, it will take another 10 days to close on the sale, Vigodman said.

A spokeswoman for the FTC declined to comment.

Teva shares (TEVA.N: Quote) rose 2.95 percent to $54.01 in late morning trading in New York, and Allergan gained 1.96 percent to $244.42.

Allergan also said in a regulatory filing earlier on Wednesday that the companies had amended their sale agreement to extend the deadline by three months into late October. As the review has continued into July, it has raised the likelihood of the companies missing the deadline later this month.

As recently as May, Allergan CEO Brent Saunders had said he expected the deal to close within weeks.   Continued...

 
Traders work at the post where Allergan stock is traded on the floor of the New York Stock Exchange (NYSE) April 6, 2016. REUTERS/Brendan McDermid