Mallinckrodt and Endo , drugmakers which recently emerged from bankruptcy after a wave of U.S. opioid lawsuits, announced plans Thursday to join forces in a deal valued at $6.7 billion.

(Reuters) - Mallinckrodt and Endo, drugmakers with a shared history of facing U.S. opioid litigation, have agreed to merge in a deal valued at nearly $7 billion. Under the terms of the agreement, Endo shareholders will get $80 million in cash and own 49.9% of the combined company on a pro forma basis, the companies said on Thursday.

Mallinckrodt Pharmaceuticals and Endo Inc. are exploring a potential merger that could be valued at about $7 billion, people with knowledge of the matter said.