Generic drug maker Mylan has made an offer of nearly $29bn to acquire Irish over-the-counter (OTC) firm Perrigo. The amount has been offered in cash and stock deal.

As a part of the deal, Perrigo shareholders will receive $205 in a combination of cash and Mylan stock for each Perrigo share. Perrigo has confirmed that it has received the proposal from Mylan with regard to the possible offer.

Mylan executive chairman Robert Coury said, "This proposal is the culmination of a number of prior discussions between Mylan and Perrigo about the compelling strategic and financial logic of this combination".

The combination will lead to a valuable and long-term creation. The combination of the businesses would lead to the production of a company having specialty brands, generics, over the counter and nutritional brands.

Coury was of the view that they are hoping to work with Perrigo, so that they can grab the opportunities and work in unison to create a unique leader with one of a kind profile in the industry. Perrigo affirmed that its board will meet to discuss the proposal.

It shall also be noted that there is no surety that any offer will be made. After the revelation, the shares of Mylan increased by 16%.