Salix Pharma - Cosmo Pharma Merger Deal Receives Regulatory Approval

(RTTNews) - Salix Pharmaceuticals, Ltd. (SLXP) announced that it has received notice of the early termination of the waiting period for U.S. antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, relating to combination transaction with Cosmo Pharmaceuticals S.p.A. The waiting period was scheduled to expire on August 21, 2014.

Termination of the waiting period satisfies a condition to the closing of the transaction. Completion of the transaction remains subject to approval by Salix's stockholders and certain other closing conditions.

In July, Salix Pharmaceuticals agreed to merge with Cosmo Technologies, a part of Italy-based Cosmo Pharmaceuticals S.p.A.; in a move that is expected to enhance its position in developing gastrointestinal products in the U.S., and create a corporate structure that enhances its acquisition strategy and organic growth.

Salix, based in Raleigh, North Carolina, will become a unit of Irish domiciled Cosmo Tech, which will change its name to Salix Pharmaceuticals plc and is expected to list its shares on the NASDAQ Global Select Market.

Upon closure, shareholders of Salix are expected to own slightly less than 80 percent of the shares of Salix Pharmaceuticals plc and Cosmo is expected to own slightly more than 20 percent. The deal will be taxable to Salix shareholders.

Shareholders of Salix will receive one ordinary share of Salix Pharmaceuticals plc in exchange for each share of Salix Pharmaceuticals Ltd stock they own at closing.