Germany’s Merckle family is selling generic drug maker, Ratiopharm, to Teva in a €3.6 billion deal, Financial Times reports. The company beat out Pfizer and Iceland’s Actavis after it offered about €200 million more than the rival bidders. Royal Bank of Scotland and Commerzbank are managing the deal.

The acquisition will enable Ludwig Merckle to repay all the debt at VEM, his main holding company. Eyal Desheh, CFO of Teva, said the group will use $3 billion from its cash reserves and $2 billion from credit lines to pay for the transaction, according to The Wall Street Journal.

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