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Israel’s Teva Pharmaceutical Industries announced the purchase of the Dublin-based Allergan’s generic pharmaceuticals business for $40.5 billion today.

Consequently, Teva will not be dealing with the pharmaceutical company Mylan anymore. Allergan is set to receive $33.75 billion in cash, since Teva has been valued at $6.75 billion in shares.

Erez Vigodman, the president and CEO of Teva, said the following in a statement, “Through our acquisition of Allergan Generics, we will establish a strong foundation for long-term, sustainable growth, anchored by leading generics capabilities and a world-class late-stage pipeline that will accelerate our ability to build an exceptional portfolio of products – both in generics and specialty as well as the intersection of the two.”

Teva aims to save money and become more efficient by combining with a big and generic drug company like Allergan.

Generic drugs are less expensive than name-brand drugs, but some generics have been too expensive due to a lack of competition by the manufacturers. Therefore, by combining the two drug companies, Teva believes that everybody, including consumers, will benefit from this transaction.