DUBLIN (AP) — U.S. drugmaker Perrigo has agreed to buy Ireland's Elan for $8.6 billion in a deal designed to expand overseas and reduce its tax bill.
Michigan-based Perrigo says it will pay Elan investors $6.25 per share in cash and $10.25 in Perrigo stock. The deal represents an 11 percent 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 says 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 percent rate of tax on profits, versus the U.S. rate of 35 percent.
Elan confirmed the deal.
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