Valeant succeeds with all-cash offer for Salix Pharmaceuticals

Valeant Pharmaceuticals has won the bid battle for US rival Salix Pharmaceuticals following its failure last year to acquire Allergan, the maker of Botox.

Over the weekend, Quebec-based Valeant upped its offer to approximately $11.1bn in cash or $173 per share to see off a rival bid from Endo International.

The new bid price represents a 9.49% increase on the company's prior offer and provides approximately $1bn extra in cash.

Raleigh, North Carolina-based Salix specialises in treatments and devices for gastrointestinal disorders, such as Xifaxan for diarrhoea and Uceris for ulcerative colitis.

Endo has now withdrawn its offer.

Subject to shareholder approval, transaction close is expected on 1 April 2015.

Valeant, which has carried out multiple acquisitions over the last few years, highlighted the all-cash nature of its offer and the shortened timeline for approval.

The deal is expected to be modestly accretive to Valeant's earnings this year and to add 20% to earnings per share in 2016.

As of 13:45 in New York, Valeant was up 2.3% at $201.97, while Salix gained 2% to $172.78.