Bill Gallery/Watson Pharmaceuticals, via Associated Press

Watson Pharmaceuticals is expected to bid as much as 5 billion euros ($6.6 billion) for the Swiss drug maker Actavis Group in a deal that would create one of the world’s largest generic drug manufacturers, according to people with direct knowledge of the matter.

The acquisition would help bolster Watson’s international presence. While both companies have operations in the United States, Actavis has a larger share of generic drug manufacturing overseas, particularly in Eastern Europe.

“A deal of Actavis would solve all their issues in the rest of Europe and other parts in the world,” said one person briefed on the matter, who spoke on the condition of anonymity because he was not authorized to speak publicly. “An approach by Watson would be a perfect fit for Actavis.”

The people cautioned that talks were continuing and could still fall apart. The news of the deal was earlier reported by Reuters.

A deal would also represent a win for Deutsche Bank, which remains Actavis’s largest creditor after it financed the $5 billion leveraged buyout of the Swiss generic drug maker by the Icelandic billionaire Bjorgolfur Thor Bjorgolfsson in 2007.

In the aftermath of the financial crisis, Actavis has been bogged down by the high cost of its debt. The situation has put pressure on Deutsche Bank, which in its fourth quarter reported a 407 million euro impairment charge related to Actavis.

By finding a potential buyer for the Swiss company, the bank’s new incoming chief executives, including Anshu Jain, the current head of its investment banking unit, would be able to offload Actavis’s debts.

“It would be a perfect start for Jain if he’s able to solve the issues surrounding Actavis,” said a person with direct knowledge of the matter, who spoke on condition of anonymity because he was not authorized to speak publicly.

Watson is the only company so far to have approached the Swiss drug maker about a potential takeover, but other firms could enter the fray over the coming weeks, the person added.

The proposed takeover of Actavis is the latest in a number of mergers and acquisitions in the pharmaceuticals industry.

Last year, drug companies announced $98.6 billion of deals, including Watson’s $562 million acquisition of Specifar Pharmaceuticals of Greece. That volume represents a 46.5 percent increase from the previous year, according to the data provider Dealogic.