Biovail, Valeant Agree to Merger

Valeant and Biovail June 21 announced that the boards of directors of both companies have unanimously approved a definitive merger agreement of the drug companies.

The combined company will be called Valeant Pharmaceuticals International Inc., the companies said. The new Valeant will be headquartered in Mississauga, Ontario. The location of the U.S. headquarters will be determined after the close of the transaction, the companies said.

Under the terms of the agreement, Valeant stockholders will receive a one-time special cash dividend of $16.77 per share immediately prior to closing of the merger and 1.7809 shares of Biovail common stock in exhange ...