Generic drugs giant Mylan is acquiring Swedish drugmaker Meda in a cash and stock deal valued at around $9.9 billion.

Under the agreed terms, the offer values each Meda share at SEK 165, giving a total equity value of around SEK 60.3 billion or $7.2 billion, with the remaining portion of the deal comprised of debt.

According to Mylan, the combination will create “a diversified global pharmaceutical leader with an expansive portfolio of branded and generic medicines and a strong and growing portfolio of over-the-counter products”. 

The acquisition also provides Mylan with stepping stones into number of new emerging markets, such China, Southeast Asia, Russia, the Middle East and Mexico. 

The companies have a “highly complementary therapeutic presence”, which will create a leading global player in respiratory/allergy, and “achieve critical mass in dermatology and pain”, offering greater opportunities for growth.

“Meda is a unique and strategic asset, with a high quality workforce, which will add to our powerful, diversified and sustainable global platform and provide exciting new opportunities for Mylan,” noted Mylan’s chairman Robert Coury, further explaining the strategy behind the move.

“We structured this transaction in a way that optimises our balance sheet and still leaves us ample financial flexibility to continue to complement our business with additional attractive opportunities”.

The transaction is expected to close in the third quarter of this year, and should be immediately accretive to Mylan’s earnings, and significantly increasing after the first full year (2017) as anticipated operational synergies of around $350 million.

The deal follows Mylan’s unsuccessful attempt to snap up rival Perrigo last year.