As reported by the  BBC News the Israeli drugs giant, Teva has bought Germany’s second largest generics drug firm Ratiopharm for £3.2bn. Teva beat rival bids from U.S. pharmaceutical powerhouse Pfizer and Iceland’s Actavis.

Teva is already the world’s largest generic drug maker, and as a result of this deal is now number one in Europe, beating Novartis’ generics unit. The deal is also set to increase their presence in Spain, Italy and France.

Teva’s Chief Executive Shlomo Yanai stated, “This is an important acquisition for Teva, This transaction is perfectly aligned with our long-term strategy in which Europe is an important pillar and growth-driver.”

Generics are based around drug patents that have expired, allowing companies to both manufacture and sell them and is therefore seen as a high growth market.