DUBLIN, Ireland and NEW YORK—Allergan plc (NYSE: AGN), confirmed yesterday that it has been approached by Pfizer Inc. and is in “preliminary friendly discussions regarding a potential business combination transaction.” Allergan stated that "no agreement has been reached and there can be no certainty that these discussions will lead to a transaction, or as to the terms on which a transaction, if any, might be agreed.” The company said it will not comment on speculation regarding the terms of a potential transaction.

On Wednesday and Thursday of this week, the Wall Street Journal and, subsequently, other financial sites and sources reported that the two pharmaceutical giants were having discussions for a multi-billion dollar deal that could potentially be the largest ever in the sector.

“Under any potential scenario with Pfizer,” Allegan’s statement said, “Allergan remains strongly committed to complete the proposed divestment of its global generics business to Teva Pharmaceutical Industries Ltd. and expects the generics divestiture transaction to close in the first quarter of 2016. A further announcement will be made when appropriate.”

Allergan made the announcement falling under rule 2.4 of Irish Takeover Panel Act, 1997 and emphasized that its announcement was not a firm intention.

Later yesterday, Pfizer (NYSE: PFE) issued its own statement confirming the “preliminary friendly discussions” with Allergan as well, emphasizing that no agreement has been reached and that there is no certainty that the discussions will lead to a transaction or as to the terms on which a transaction, if any, might be agreed.