Israeli drugmaker Teva Pharmaceuticals Industries Ltd. agreed to buy the generic-drug business of Allergan Plc for about $40.5 billion in cash and stock, and ended its hostile bid for rival Mylan NV.

Teva will pay $33.75 billion in cash and an amount in shares valued at $6.75 billion today, representing an estimated under 10 percent ownership stake in the enlarged company, Teva said in a statement.

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