said Tuesday that it received permission from the Federal Trade Commission to buy fellow generic-drug maker
Watson said it expects to close the deal Nov. 3. Andrx stockholders will receive $25 a share in the
$1.9 billion transaction.
The acquisition reflects the need of midsized
companies to expand their sales, at home or abroad. Otherwise, they risk being acquired or placed at a competitive disadvantage vs. larger generic-drug companies. The combination of Watson and Andrx will have sales of around $2.7 billion.
The FTC approval comes with a few conditions, which Watson said aren't significant. Watson must cancel an agreement with one company to market a painkiller, sell the rights to a generic diabetes treatment to another company and sell its oral contraceptives to a third company.
Watson announced the FTC's decision after markets had closed. In regular trading, Watson's stock closed at $26.91, up 36 cents, or 1.4%.