Generic drugmaker Mylan NV said it would buy Meda AB in a US$7.2 billion (S$10 billion) cash-and-stock deal in its third attempt to buy the Swedish company.
The move comes three months after Mylan ditched its seven-month long pursuit of smaller rival Perrigo .
Shares of Mylan fell 8 per cent in after-hours trading after announcing the offer of 165 Swedish crowns (S$27) per share. That is nearly double Meda's last traded price and some analysts questioned the high premium.
Chief Executive Heather Bresch said on a conference call that the company was looking at doing more M&A deals.
Meda makes branded, over-the-counter and generic drugs. It already handles European sales for EpiPen, Mylan's emergency treatment for severe allergic reactions and its biggest selling branded product.
The Netherlands-based Mylan said the offer, recommended by Meda's board, valued the company at US$9.9 billion, including debt.
Meda's two largest shareholders, who own about 30 per cent of the specialty pharmaceutical's outstanding shares, have accepted the offer, Mylan added.
In 2014, Meda rejected takeover offers from Mylan after its biggest shareholder spurned the deal.
Stena Sessan Rederi AB, controlled by the Olsson business family, is the biggest shareholder in Meda, with a 20.7 per cent stake.
Mylan will finance the cash portion of the offer through a new bridge credit facility arranged by Deutsche Bank Securities Inc and Goldman Sachs Bank USA.
The transaction, due to be completed by the third quarter, is expected by Mylan to immediately add to earnings.
Mylan announced the takeover as it reported fourth-quarter profit and revenue that fell short of analysts' estimates.
Net income attributable to shareholders rose to US$194.6 million from US$189.2 million a year earlier.
On a per-share basis, profit fell to 38 cents per share from 47 cents per share a year earlier due to an increase in the number of shares outstanding in the latest quarter.
Excluding special items, Mylan earned US$1.22 per share, below the average analyst estimate of US$1.28 per share.
Revenue rose about 20 per cent to about US$2.5 billion. Analysts were expecting US$2.70 billion, according to Thomson Reuters I/B/E/S.
Mylan shares traded at US$46.60 in after-market trading. They closed at US$50.54 Wednesday on the Nasdaq, while Meda's shares closed at 86.05 crowns.
Centerview Partners was Mylan's financial adviser and Cravath, Swaine & Moore LLP, Vinge, and NautaDutilh its legal advisers. Rothschild & Co served as Meda's financial adviser.