Mylan's (NASDAQ:MYL) bid for Perrigo (NYSE: PRGO) now looks more likely after a US district court ruling.
Perrigo had also applied for a preliminary injunction over the proposed acquisition, but the court ruled Mylan had provided adequate disclosures regarding the synergies expected from the deal.
It also decided that Mylan's disclosures over its plans to de-list Perrigo in New York and Tel Aviv as soon as practicable following the consummation of the offer were appropriate.
It is another in the current spate of M&A activity in the pharma sector.
Mylan has previously said it expects the combination of Mylan and Perrigo would result in at least US$800 million of annual pre-tax operational synergies by the end of the fourth year.
Perrigo has urged its shareholders to reject Mylan’s US$25 billion bid, which went hostile in September.
Perrigo shareholders have until November 13 to accept the offer.
Perrigo shareholders will receive US$75 in cash and 2.3 Mylan shares for each of their shares.
On September 14, 2015 Mylan officially began its formal offer to acquire all outstanding shares in Perrigo.
Mylan shares in pre-market nudged 0.48% higher, while Perrigo closed yesterday up 3.35%.