Valeant and Biovail agree '$.3.2 billion' reverse merger to create a $1.75 billion sales group

Acquisitive California, USA-based Valeant has entered into a definitive reverse merger agreement with Canada's Biovail under which the companies would combine to generate enhanced value for stockholders, in a stock and cash deal estimated at around $3.2 billion.

The combined company will be called Valeant Pharmaceuticals International and, following completion of the merger, will be headquartered in Mississauga, Ontario and will remain a Canadian domiciled corporation, listed on both the Toronto and New York Stock Exchanges.

In addition, the combined company will retain Biovail's existing principal operating subsidiary in Barbados, which will continue to own, manage, control and develop intellectual property for the combined company. The location of the combined company's U.S. headquarters will be determined after the close of the transaction.