The combination would have 'critical mass' in speciality brands, generics, OTC and nutritional products
US generic drugmaker Mylan has offered to buy Ireland-based Perrigo in a cash and shares deal worth almost US$29bn.
Mylan is proposing to pay $205 a share in a transaction that will create a 'diversified, global pharmaceutical leader with an unmatched commercial and operating platform and a unique, one-of-a-kind profile'.
The company said the businesses would complement each other and have 'critical mass' in speciality brands, generics, over-the-counter (OTC) and nutritional products.
Robert Coury, Executive Chairman of Mylan, said: 'This combination would result in meaningful immediate and long-term value creation, and our proposal is designed to deliver that value to shareholders and other stakeholders of both companies.'
This potential deal could create a company with a stock market value of almost $60bn.
Both companies have been involved in other acquisitions recently. In July last year, Mylan bought the generics drugs business of Abbott Laboratories for $5.3bn and in November Perrigo purchased Belgium's Omega Pharma for $4.5bn.