Meda in $3.1 billion deal to acquire Italy’s Rottapharm

Sweden’s Meda (OMX: MEDA A) says it has entered into a definitive agreement to acquire Rottapharm Madaus, an Italian company owned by the Rovati family, for a consideration of 21.2 billion Swedish kronor ($3.1 billion) on a cash and debt free basis.

Shares of Meda, which itself  recently rejected an unsolicited $9 billion takeover offer from US generics major Mylan, climbed 3.3% to 109.90 kronor as of 11:11am in Stockholm trading.

The transaction will comprise 15.3 billion kronor in cash, 30 million Meda shares corresponding to a value of 3.3 billion kronor and a non-contingent deferred payment in January 2017 of 2.6 billion kronor. Following completion of the transaction, the Rovati family will own 9% of Meda. Subject to customary conditions, the deal is expected to complete in the fourth quarter of this year.