Shire (LON:SHP) has moved closer to its tie-up with Japan’s Takeda Pharmaceutical, as the US cleared the proposed merger. The completion of the deal, however, remains subject to a number of conditions, including approval by shareholders of both companies.
Shire’s share price has climbed into positive territory in today’s session, having added 0.37 percent to 4,310.00p as of 13:40 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.04 percent higher at 7,690.68 points. The group’s shares have added more than three percent to their value over the past year, as compared with about a 4.4-percent gain in the Footsie.
US approval for merger
Takeda announced in a statement today that it had received unconditional clearance from the United States Federal Trade Commission for the proposed acquisition of Shire.
“The FTC’s unconditional clearance of the Acquisition is another significant milestone in the transaction process,” the Japanese company said, adding that the tie-up remained subject to a number of conditions, including receipt of other regulatory clearances and approval by the shareholders of both companies.
“One of the biggest steps Takeda has to go through is getting approval from their shareholders, and the fact that they got approval from the U.S. will help convince shareholders about the deal,” Kyouko Amemiya, senior market adviser at SBI Securities Co, told Bloomberg News.
Analysts on Shire
Barclays, which sees Shire as an ‘equal weight,’ hiked its price target on the shares from 3,650p to 3,900p today, while Liberum Capital reaffirmed the rare disease specialist as a ‘hold,’ without specifying a valuation on the stock. According to MarketBeat, the company currently has a consensus ‘buy’ rating and an average price target of 4,613.25p.