FTC requires Mylan to sell rights to seven generics for Perrigo acquisition to proceed

Netherlands-incorporated drugmaker Mylan (Nasdaq: MYL) yesterday received tentative approval from the US Federal Trade Commission for the company's proposed acquisition of Perrigo (NYSE: PRGO) subject to Mylan's divestiture of certain products following the consummation of the offer. Mylan’s shares rose 2.84% to $47.11 in midday trading on Tuesday.

The FTC decision represents the final regulatory clearance needed by Mylan to close its acquisition of Perrigo and represents the last remaining condition that needs to be satisfied for the successful completion of the offer other than the acceptance condition, which has so far not been received, as Perrigo’s management continues to argue against the deal. Mylan requires the support of the majority of shareholders for the takeover, the deadline for which is November 13.

In a letter to shareholders on Tuesday, Perrigo chief executive Joseph Papa reiterated his opposition to the $27 billion deal with Mylan, calling its offer "grossly inadequate" and accusing Mylan of "poor corporate governance practices."