Abbott to Sell Generic Drug Unit to Mylan for $5.3 Billion

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Abbott Laboratories (ABT:US) said it plans to sell its generic drug business for established markets to Mylan Inc., getting in return a share of the newly combined companies in a deal valued at about $5.3 billion.

Abbott is selling medicines that generated about $2 billion in 2013 in exchange for 105 million shares, or about 21 percent, of the newly formed company, it said in a statement today. Abbott, based in Abbott Park, Illinois, said it doesn’t plan to hold the shares for an extended period after the transaction closes in the first quarter of 2015.

Abbott plans to continue to develop and grow the portion of its generic drug business that sells branded generic medicines in emerging markets. The drugs included in the deal were sold in countries across Europe, Japan, Canada, Australia and New Zealand.