Drug maker Aurobindo Pharma on Saturday confirmed its decision to acquire commercial operations of Dublin-based Actavis Plc in seven western European countries.

The acquisition will cost Aurobindo 30 million euros, and the pharmaceuticals giant has plans to fund the deal through internal accruals.

The deal, which will increase Aurobindo's international footprint, will include commercial infrastructure, products and marketing authorizations in the European markets. To support the growth plans of their businesses, the two companies have also decided to enter a long-term commercial & supply deal.

V. Muralidharan, senior VP of European business at Aurobindo, described the deal as a "value-enhancing and forward-looking initiative" by the company. The commercial operations of Actavis rae currently loss-making but are expected to return to profitability in the future.

Commenting on the deal, Muralidharan said, "This transaction will complement our strategy of pursuing organic growth along with value-creating acquisitions within our served markets."

The acquisition deal expands Aurobindo's front-end operations into five segments, viz. generics, generics tenders, prescription products, over-the-counter products, and hospital products.

The transaction is, however, conditional on certain regulatory and anti-trust approvals.