Yesterday, Teva Pharmaceuticals ( TEVA) and Cephalon ( CEPH) said they received approval from the European Commission to proceed with a $6.8 billion merger announced in May. The EC approval requires Teva to divest Cephalon's marketing of a generic drug called Modafinil in France and give the acquirer of this marketing license additional distribution rights the entire European Economic Area. With the approval, the Israeli and U.S. pharmaceutical giants have gained all regulatory passages to close their merger, which they now expect to close on October 14. Cephalon's $2.76 billion in annual revenue will be added to Teva's existing businesses of more than $16 billion in annual revenue. Teva Pharmaceuticals May bid of $81.50 a share in cash trumped a previous $73 a share bid by Valeant ( VRX) and was a nearly 40% premium to Cephalon's stock prior to takeover bids. Teva was looking for an acquisition to bolster future revenue. Prior to the merger, the Jerusalem-based company derived roughly 20% of overall revenue from the multiple sclerosis drug Copaxone; however its patent for the drug expires in 2014. The merger with Philadelphia-based Cephalon follows similar M&A activity to replace expiring pharmaceutical patents, which when they expire, allows generic drug makers to then begin selling drugs. In 2010, Teva bought German drug maker Ratiopharm for roughly $5 billion. Its largest merger to date is a 2008 acquisition of Barr Pharmaceuticals for $7.5 billion that bolstered its generic drug revenue. Activist investor Carl Icahn has taken a 9.8% stake in Navistar ( NAV) after not previously holding a position, according to a regulatory filing late Thursday. The investment in the truck, bus and diesel engine maker follows Icahn's disclosure of a 9.5% stake in armored truck maker Oshkosh ( OSK) back in June. Similar to the rationale he cited for the Oshkosh investment, Icahn said in the 13D filing with the Securities and Exchange Commission that he had "a "belief that the Shares were undervalued at current levels" and that he's "had conversations with management" to discuss the company's business" in reference to Navistar. The filing also indicated that Icahn may seek representation on Navistar's board. Navistar shares opened up more than 11% to $43.15, the stock is down more than 25% so far in 2011.