DUBLIN -- U.S. drugmaker Perrigo ( PRGO) has agreed to buy Ireland's Elan ( ELN) for $8.6 billion in a deal designed to expand overseas and reduce its tax bill.
Michigan-based Perrigo said it will pay Elan investors $6.25 per share in cash and $10.25 in Perrigo stock. The deal represents an 11% premium over Elan's closing price Friday. Earlier this month, Elan said it was open to offers after spending months fighting a hostile, lower-priced takeover bid by Royal Pharma. Perrigo said Monday it will become an Irish-based company and said it could cut its tax liabilities nearly in half, saving more than $150 million annually. About 700 U.S. companies based in Ireland pay a 12.5% rate of tax on profits, versus the U.S. rate of 35%. Elan confirmed the deal.