Updated from 5:36 a.m. EDT

PETAH 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.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

More from Stocks

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

High-Flying Mutual Funds Begin to Favor Energy but Tech Still Reigns Supreme

High-Flying Mutual Funds Begin to Favor Energy but Tech Still Reigns Supreme