Actavis to acquire Allergan for £42bn

Actavis is rallying an amount of £42bn ($66bn) to acquire Botox-maker and major supplier of breast implants, Allergan.

Though harried by a hostile bid from Valeant Pharmaceuticals and activist investor William Ackman for months, Allergan managed to stave them off and sign a deal in cash and shares with Actavis, which is worth $12bn more than what Valeant had offered.

Deemed hostile, Valeant’s attempted takeover had left Allergan apprehensive regarding Research and Development (R&D). Allergan believed Valeant would drastically reduce R&D to make the deal financially feasible.

This deal, the biggest pharmaceutical agreement this year, saves Actavis $1.8bn in yearly costs, according to the company.