NEW YORK (TheStreet) -- Baxalta (BXLT) stock is rising 0.2% to $40.09 on Monday after the companies announced this morning that Dublin-based bio-pharmaceutical company Shire (SHPG) will buy Baxalta for $32 billion in cash and stock.
Under the transaction, shareholders will receive $18 in cash and 0.1482 Shire American depositary shares per Baxalta share, implying a total value of $45.57 per share.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, commented on the merger, saying: "Baxter is a monster at creating value as this deal shows. I had pushed Baxter hard in 'Get Rich Carefully' to do just this breakup and am gratified that it worked!"
Baxalta spun off from Baxter International (BAX) into a separate company six months ago.
Shire has been pursuing Baxalta, the maker of treatments for rare blood conditions, cancers and immune system disorders, for about six months.
The deal, which creates the fifth largest maker of rare disease drugs in the world, would generate annual cost savings of over $500 million within the first three years of the deal closing, Shire said.
"This transaction presents a unique opportunity for Baxalta shareholders, who will receive substantial immediate value as well as an ongoing stake in a combined global leader in rare diseases with strong growth prospects," Baxalta CEO Ludwig N. Hantson stated.
Specifically, Baxalta shareholders will have a 34% stake in the combined company.
Shares of Shire are falling 5.63% to $175.52 on Monday morning.