UPDATE: Valeant confirms $10 billion offer for Salix

Acquisitive Canadian drugmaker Valeant Pharmaceutical International (TSX: VRX) late Sunday confirmed it has reached a definitive agreement to acquire US drugmaker Salix Pharmaceuticals (Nasdaq: SLXP) for around $10 billion in cash.

Valeant, pipped to the post last year by Actavis in its $54 billion attempt to buy Botox maker Allergan, is proposing to buy all the outstanding shares of Salix at $158 per share in cash, the same as ‘informed’ sources had suggested ahead of the actual announcement, and meaning an enterprise value (including debt) of $14.5 billion. Shares of gastrointestinal (GI) drug specialist Salix rose $7.11, or 4.7%, to $157.85 in extended trading on Friday, almost completely eliminating any premium in the purchase price, noted Bloomberg. The transaction, which is expected to close in the second quarter of 2015, is subject to customary closing conditions and regulatory approval.

Allergan itself was close to a deal for Salix last fall, as a way to avoid being taken over by Valeant but those talks collapsed after due diligence on Salix revealed issues with its inventory, according to reports. Ireland-headquartered Shire has also been in the frame to acquire Salix, but finally made a move on NPS Pharmaceuticals, in a $5.2 billion deal that completed on Friday.