Abbott spends $2.9 billion on CFR Pharma to expand Latin American presence

US drugmaker Abbott (NYSE: ABT) has signed an agreement to acquire Latin American pharmaceutical company CFR Pharmaceuticals, more than doubling its Latin American branded generics pharmaceutical presence and further expanding Abbott's presence in fast-growing markets.

Under the terms of the accord, Abbott will acquire the holding company that indirectly owns about 73% of CFR Pharma and will conduct a public cash tender offer for all of the outstanding shares of CFR. Assuming all publicly-held shares are tendered, the total purchase price would be around $2.9 billion, plus the assumption of net debt of about $430 million. This acquisition immediately establishes Abbott among the top 10 pharmaceutical companies in Latin America, further broadening Abbott's geographic presence across the region.

Deal surprises local analysts