Teva Pharmaceutical Industries Ltd. has received regulatory approval from the European Commission for its $40.5 billion acquisition of Allergan plc's global generics business, subject to certain divestments. Teva is still working with the US Federal Trade Commission to gain regulatory approval in the US.

As part of the European Commission’s approval, Teva has agreed to the divestment of certain overlapping molecules in 24 European countries, other than the United Kingdom, Ireland and Iceland. In the United Kingdom and Ireland, Teva will divest a majority of the current Allergan Generic business. As required by the European Commission, the divested business will be capable of manufacturing and marketing generic medicines. The remainder of the Allergan Generics UK/Ireland business will be integrated with Teva's operations in line with the global transaction. In Iceland, Teva will divest its generic business while retaining the Allergan Generics business.

Teva made the move to acquire Allergan’s generics business following its terminated efforts to acquire Mylan. In July 2015, Teva agreed to acquire Allergan Generics, the generics business of Allergan (formerly the generics business of Actavis) for $40.5 billion ($33.75 billion in cash and $6.75 billion in shares of Teva), which would give Allergan an approximate 10% stake in Teva. The transaction was unanimously approved by the boards of directors of Teva and Allergan. The move positions Allergan as innovator-based specialty pharmaceutical company with 2015 pro forma sales of approximately $15.5 billion with a focus in seven therapeutic areas, including eye care, gastroenterology, aesthetics, women’s health, central nervous system, urology, and anti-infectives. Following the close of the deal, Allergan will have a manufacturing network of 12 plants globally and a mid-to-late-stage R&D pipeline with 70 projects and a 2015 pro forma investment in R&D of approximately $1.4 billion. The transaction would result in after-tax net cash and equity proceeds for Allergan of approximately $36 billion.

Allergan is also moved forward with is proposed $160 billion merger with Pfizer, the largest deal announced in the pharmaceutical industry in 2015 and in the history of the pharmaceutical industry. If the deal proceeds as planned, it will close in the second half of 2016.

Source: Teva Pharmceutical Industries