Latham & Watkins and Linklaters have taken lead roles on Watson Pharmaceuticals' €4.25bn (£3.47bn) acquisition of Actavis in a deal which will create the third-largest global generic drug maker.

US firm Latham advised the acquirer on the deal, which was executed under English law. The firm fielded teams in California and London, with corporate partner Scott Shean heading the US team and Mike Bond the London team. London tax partner Sean Finn also advised, with New York partners Bradd Williamson and Daniel Seale acting on employee benefits and finance matters respectively.

Linklaters, meanwhile, advised Actavis and its shareholders, which include private equity firm Novator well as Icelandic banks Landsbanki and Straumir.

The magic circle law firm fielded a cross-border team under London co-head of private equity Ian Bagshaw and fellow corporate partner Aisling Zarraga. Linklaters' team also involved lawyers from across the firm's New York, Frankfurt, Luxembourg and Moscow offices.

Bagshaw commented: "We are really glad to have helped Actavis over the last five years through some strategic transactions and now into its next chapter through the sale to Watson to create the third-biggest generic player. This was a fantastic deal to do and is the largest leveraged buyout exit during this financial year."

Fellow magic circle firm Clifford Chance (CC) advised the lenders to Actavis, which include Deutsche Bank, with London corporate partners Mark Poulton and Joel Ziff leading the firm's team. US firm Shearman & Sterling also took a role on the deal, with London-based corporate partner Jeremy Kutner acting for Actavis' management team.