Bayer Nordic, based at Espoo, Finland, has launched a takeover vehicle for the acquisition of Norwegian pharmaceutical producer Algeta. Through the subsidiary, the Bayer group has commenced its public offering for all the shares for 362 Norwegian crowns (€42.80) in cash. This puts the total value of the transaction at 17.6 billion crowns (€2.1 billion) and the enterprise value at €16.2 billion (€1.9 billion).

Algeta's board of directors has unanimously recommended that its shareholders accept the offer that started on Jan. 20 and expires at 9 a.m. Central European Time on Feb. 24. Bayer said it has already obtained pre-acceptances for around 14 % of the shares, including the shares of all members of the Algeta board and its largest shareholder, HealthCap IV.

Bayer said completion of the offer is subject to satisfaction or waiver of customary conditions detailed in the offer document, including a minimum acceptance level of 90% of the share capital. The German federal cartel authority, Bundeskartellamt, approved the acquisition on Jan. 6, and no further antitrust approvals are required.

Bayer HealthCare and the Norwegian drugmaker have collaborated since 2009 on developing and commercializing Xofigo, an alpha-particle-emitting radioactive therapeutic agent for the treatment of patients with castration-resistant prostate cancer (CRPC), symptomatic bone metastases and no known visceral metastatic disease. The drug was approved in the US and Europe in 2013.