Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today announced that it has completed the acquisition of Germany's Ratiopharm GmbH, which it acquired in March. The closing came ahead of schedule. Teva said in its financial report for the second quarter that the closing would be in the fourth quarter.
Teva paid €3.625 billion for the Ratiopharm shares, plus €186 million in accrued interest.
Teva reiterated that it expects synergies of at least $400 million, which should be fully realized within three years. The figure is higher than the original savings of $250 million that Teva reported in the original acquisition announcement.
Ratiopharm is Germany's second largest generics producer. The acquisition will turn Teva into number one generic company in Europe, holding the leading market position in ten countries, as well as ranking in the top three in seven other countries. Ratiopharm will also significantly boost sales by Teva Canada Ltd.
Teva president and CEO Shlomo Yanai said, "Teva, the world's leading generic pharmaceutical company, will now become the number one generics company in Europe as well. Increasing Teva's market share in Europe - a geography with tremendous potential for generics penetration - is an important pillar of our long-term growth strategy. With the acquisition of ratiopharm we will become the leader in key European markets and we are well-positioned to become the leader in many other European markets in the near future."
Teva's share closed at $50.18 on Nasdaq yesterday, and the share price was unchanged at NIS 189.90on the TASE today, until the announcement.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2010
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