Teva Pharmaceutical Industries Ltd. has acquired Allergan Generics for $40.5 billion. Upon closing, Allergan will receive $33.75 billion in cash and shares of Teva valued today at $6.75 billion. The transaction was unanimously approved by the boards of both companies and is expected to close in the first quarter of 2016.

This acquisition brings together two leading generics businesses and will create a leader in the INN and branded generics industry. When combined with Teva’s strong generics portfolio, Allergan Generics’ generics pipeline, which holds a leading position in first-to-file opportunities in the U.S., will further enhance Teva’s goals of delivering the highest quality generic medicines at the most competitive prices and cultivating the best development pipeline in the industry. The resulting world-class product portfolio will be complemented by an expanded and more efficient global footprint, including leadership positions and strengthened operations, sales and R&D platforms in attractive markets around the world.

“This transaction delivers on Teva’s strategic objectives in both generics and specialty,” said Erez Vigodman, president and chief executive officer, Teva. “Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products—both in generics and specialty as well as the intersection of the two. Our respective portfolios of generic medicines and applications are highly complementary, providing Teva with high quality growth and earnings visibility, and the scale and resources to expand upon our specialty capabilities.”

The transaction has also bolstered Teva’s R&D capabilities in the generics industry, directed at fostering innovation, with approximately 320 combined pending ANDAs in the U.S., including exclusive offerings of approximately 110 U.S. FTF pending ANDAs.