US pharmaceuticals giant Johnson & Johnson on Thursday announced it was buying Europe's biggest bio-pharmaceutical firm Actelion for $30 billion (27.9 billion euros) in a deal that creates a new spin-off company.
The world's biggest producer of healthcare goods will acquire all the outstanding shares of Switzerland-based Actelion for $280 per share, the two companies said in a joint statement. With the deal, which has been approved by the boards of both companies and is expected to be finalised by the middle of the year, Actelion will receive a 46-percent premium on its average share price over the past 60 days and a 23-percent premium on its closing price on Wednesday.
The price was also above analyst expectations, with Jefferies Equity Research for instance having anticipated Actelion would go for around 250 Swiss francs ($250, 233 euros) per share.
Investors appeared pleased with the deal, sending Actelion's share price surging 20.5 percent in afternoon trading to 273.90 Swiss francs apiece, as the Swiss stock exchange's main SMI index was up just 0.59 percent.
"We believe this transaction offers compelling value" to shareholders in both companies, Alex Gorsky, Johnson & Johnson chairman and chief executive said in the statement.
"The transaction structure will provide Johnson & Johnson flexibility to accelerate investment in its industry-leading, innovative pipeline to drive additional growth," he said.
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