World's biggest biotechnology company, Amgen has indicated that it is planning to acquire Onyx Pharmaceuticals in a deal valued at around $10.4 billion.

The cash deal will allow Amgen to gain access to the company's three anticancer treatments. Under the deal, Amgen has agreed to offer $125 a share in cash through an offer for Onyx's shares and the transaction is expected to close at the beginning of the fourth quarter. The company said that the deal is still subject to the approvals from the regulators.

Standard & Poor's Capital IQ has shown that if the takeover is finalised, it will be among the five biggest takeovers of a biotechnology company. Other major deals include Aventis' $20 billion acquisition of Genzyme and Gilead Sciences' $11 billion purchase of Pharmasset in 2011. It will also be the second largest acquisition by Amgen following the takeover of Immunex in 2002 in a deal valued at $17 billion.

The bid price of $125 a share is higher than $120-a-share proposal that was turned down by Onyx two months earlier but is still lower than $130 a share many expected by analysts. The shares of Onyx closed at $119.96 on Friday while that of Amgen closed at $105.60.