Teva Pharmaceutical Industries has completed the acquisition of Germany’s Ratiopharm, propelling the Israeli drugmaker into the number one spot in Europe for generic companies.

The 3.63 billion euro deal to bag Germany's second largest generics producer means that Teva now holds the leading market position in ten countries, as well as ranking in the top three in seven others. In addition, the transaction will significantly increase its sales in Canada.

Chief executive Shlomo Yanai said “this is an exciting day for Teva and Ratiopharm”, adding that increasing his firm’s market share in Europe, “a geography with tremendous potential for generics penetration, is an important pillar of our long-term growth strategy”. He went on to say the combined experience of the companies “will ensure a quick, smooth, and successful integration process”.

Oliver Windholz, Ratiopharm’s chief executive, said “we have long viewed Teva as the right match for our company, thanks to its clearly defined strategic vision and commitment to generic medicines and its highly reputable management”. The company was sold by the conglomerate formerly run by German billionaire Adolf Merckle, who committed suicide at the start of 2009.

Teva confirmed that it expects synergies of at least $400 million from the buy, which should be fully realised within three years.