Read on for how the world's fourth-largest generic-drug company lured buyer Teva (not to be confused with Tivo) into coughing up a cool $7.46 billion.

Israeli generic-drug maker Teva Pharmaceutical Industries Ltd. agreed to acquire U.S. peer Barr Pharmaceuticals Inc. for $7.46 billion in cash and stock, the latest deal in the consolidating sector.

Teva will also assume $1.5 billion of debt as part of the deal, which is expected to close in late 2008, the companies said Friday.

In making the purchase, Teva takes over the world's fourth-largest generic-drug company and strengthens its position in fast-growing Central and Eastern European markets. The deal also expands Teva's product portfolio, both in its generics business -- Barr has the right to come to market first when several branded drugs go off-patent in coming years -- as well as its small, branded pharmaceutical business, particularly with Barr's robust women's health franchise.

"The combination of our two companies provides an outstanding opportunity strategically and economically: It will enhance our market share and leadership position in the U.S. and key global markets, further strengthen our portfolio and pipeline, and provide upside to our strategic plan, by allowing us to exceed our 20/20 goals for 2012," said Shlomo Yanai, Teva's president and chief executive officer.

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