Actavis to divest certain European operations to Aurobindo

US generics major Actavis (NYSE: ACT) plans to enter into an agreement with India’s Aurobindo Pharma (ARBN: BO) for the latter to acquire Actavis' generics commercial operations in seven markets in Western Europe. No financial terms of the proposed transaction were revealed.

The transaction is conditional on certain antitrust approvals and completion of employee consultation processes. Aurobindo would acquire Actavis' pharmaceutical commercial infrastructure in France, Italy, Spain, Portugal, Belgium, Germany and the Netherlands, including products, marketing authorizations and dossier license rights. The two companies would also enter into a long-term strategic supply arrangement.

Would leave Actavis to focus on faster growth of other markets