Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is closing on a deal to acquire bowel drug maker Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) for $160 a share. The all-cash deal values the company at $10.1 billion and would be the biggest ever carried out by Valeant having failed in a takeover bid for Botox maker Allergan, Inc. (NYSE:AGN). The deal comes on the heels of Valeant pushing to consolidate its position in the drug industry as one of the ways of becoming more efficient and keeping up with rivals.

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According to sources with knowledge of the matter, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) moved with speed in due diligence to seal the deal to avert potential bidding war with other interested parties. Salix shares were upbeat in the market on week closing session on the news, surging by 5% in the process. Allergan is reported to have been close to sealing a deal for Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) but the deal did not materialize after the company was found to have inventory issues.

Salix Shares plummeted by 40% after it emerged it had excess inventory for its supply chain and on suggestions that Sales would be affected in the future. Amidst the challenges, the bowel drug maker was forced to dismiss its chief financial officer and in January announced that its chief executive officer was set to step down. Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) had also been forced to close its planned acquisition of Cosmo Pharmaceuticals SpA amidst increased political pressure over foreign mergers commonly referred to as inversions

Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) is reportedly working with a number of advisers as it seeks to consider its options amidst the ongoing management shakeup and inventory concerns. Should the deal go through, it would represent a marriage of two companies that failed to ink tie-ups last year amidst a frenzy of deal in the pharmaceutical space.