After much speculation, Watson Pharmaceuticals has announced that it is to acquire fellow generics company Actavis Group for €4.25 B (US$5.6 B) upfront and €250 M (US$329 M) in future Watson common stock. The purchase will create the third largest global generics company, behind Teva Pharmaceutical Industries and Novartis, with pro forma 2012 revenues of approximately US$8 B. It will also significantly enhance Watson’s global presence, particularly in established European markets and emerging markets in Central and Eastern Europe.