Teva Pharmaceutical Industries has received regulatory approval from the US Federal Trade Commission to buy Allergan's generics business.
The European Commission approved the deal in March provided that Teva sold certain overlapping molecules in 24 European countries, other than the UK, Ireland and Iceland.
In the UK and Ireland, Teva had to divest a majority of Allergan's current generic business.
The companies said the cash and stock deal, which was valued at US$40.5 billion when it was announced in July 2015, is expected to close next week.
Erez Vigodman, President and CEO, Teva, said the deal was a 'transformative step for Teva' as the generics industry is one of the most attractive 'in terms of growth rates, profitability, return to investors and contribution to healthcare systems and societies around the world'.
He continued: 'The new Teva will be ideally positioned to realise the opportunities the global and US generic markets offer. The transaction strongly reinforces our strategy and yields very compelling economics. As a result, it opens a new set of possibilities for us in generics and speciality medicines.'
Once the deal is completed, Teva will have approximately 338 product registrations pending FDA approval. The firm said it would also hold the leading position in first-to-file opportunities with approximately 115 pending ANDAs in the US.
Additionally, Teva will have a commercial presence across 80 markets, including a top-three leadership position in more than 40 markets.
The transaction could achieve $1.4 billion in operational and tax savings by the end of 2019.