Mylan goes big with $29 billion offer to buy Perrigo by Laura Lorenzetti @FortuneMagazine April 8, 2015, 12:55 PM EDT E-mail Tweet Facebook Google Plus Linkedin Share icons Generic drugmaker Mylan has proposed buying Perrigo for about $29 billion in cash and stock in what would be the biggest pharmaceutical deal of the year so far. Mylan MYL will pay $205 per share in cash and stock for the Ireland-based drugmaker, representing a 24.2% premium over its closing price Tuesday. The deal would create a generic medicine powerhouse, giving the combined company critical mass in specialty brands, generics, and over-the-counter and nutritional products. Together, the two companies would have about $15.3 billion in 2014 sales. “This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination,” Robert Coury, Mylan’s executive chairman, said in a statement. This is Mylan’s second deal in nine months. The UK-based drugmaker acquired Abbott Laboratories in July for $5.3 billion, intending to move its tax address to the Netherlands. Perrigo PRGO made a similar move in 2013 when it relocated its tax headquarters to Dublin after purchasing Elan Corp. “It has been thought for quite some time that Perrigo is a takeover target,” Morningstar analyst Michael Waterhouse said. “What will be interesting to see is if we end up in a bidding war,” Waterhouse said, suggesting Teva Pharmaceutical Industries and Valeant Pharmaceuticals International as potential rival bidders. The proposal is subject to approval by Perrigo’s board. —Reuters contributed to this report.