Updated from 5:36 a.m. EDTPETAH TIKVA, Israel ( TheStreet) -- Teva Pharmaceutical Industries ( TEVA) agreed to buy Germany's second largest generics producer Ratiopharm for 3.625 billion euros ($4.9 billion). The combined company's 2009 pro forma revenue would have been $16.2 billion. Teva expects to complete the transaction by the end of the year. By winning the auction for Ratiopharm, Teva tops Pfizer ( PFE) and Iceland's Actavis which also took part in the auction. The acquisition is Teva's biggest since it bought Barr Pharmaceuticals for $7.4 billion two years ago. "This is an important acquisition for Teva. This transaction is perfectly aligned with our long-term strategy in which Europe is an important pillar and growth driver," said Shlomo Yanai, Teva's CEO, in a statement. -- Written by Andrea Tse and Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.