Mylan Strikes $7.2 Billion Deal for Meda as Earnings Miss

  • Price represents a 92% premium to Meda's close on Wednesday
  • Meda board has recommended offer be accepted, Mylan says
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Mylan NV said it will buy Meda AB in a cash and stock deal worth about $7.2 billion, adding the Swedish company’s specialty drug products and European operations.

Mylan will pay 165 Swedish kronor ($19.62) per share, a 92 percent premium over Meda’s closing price of 86.05 kronor on Wednesday and more than Meda’s all-time high of 150.80 kronor. It’s one of the highest premiums ever paid in a pharmaceutical industry deal worth $5 billion or more, though it’s in the middle of the pack as a multiple of earnings.