Shire share price jumps as Japan okays tie-up with Takeda

Japanese firm moves closer to completing deal with London-listed group

Shire share price jumps as Japan okays tie-up with Takeda

Shares in Shire (LON:SHP) have climbed higher in London in today’s session as Japan gave its approval to the group’s $62-billion tie-up with Takeda Pharmaceutical. The news comes after China recently approved the tie-up, which, Reuters reports, will be the largest overseas purchase by a Japanese company.

As of 09:46 BST, Shire’s share price had added 1.34 percent to 4,524.50p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent higher at 7,072.31 points. The group’s shares have added more than 21 percent to their value over the past year, as compared with about a 6.4-percent gain in the Footsie.

Japan okays tie-up

Takeda announced in a statement today that it had received unconditional clearance from the Japan Fair Trade Commission for the proposed acquisition of Shire. The company noted that the proposed deal has now received unconditional clearances from regulatory authorities in jurisdictions including the US, China and Brazil.

“We are very pleased to have received unconditional clearance from the Japan Fair Trade Commission for our proposed acquisition of Shire,” Takeda’s chief executive officer commented in the statement.

The deal, however, remains subject to certain conditions, including approval by the shareholders of both companies. Reuters noted in its coverage of the news that the companies are also awaiting  a nod from EU antitrust regulators. While they are expected to make a decision by November 6, they can also open a four-month long investigation if they have serious concerns.

Analysts on Shire

Deutsche Bank reaffirmed Shire as a ‘buy’ last week, while Barclays continues to see the rare disease specialist as an ‘equal weight’. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 4,725.30p.

As of 09:57 BST, Thursday, 18 October, Shire PLC share price is 7,066.63p.

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