Japan’s drugmaker Takeda Pharmaceutical is set to win conditional EU antitrust approval for its $62-billion takeover of Shire (LON:SHP), Reuters has reported. The news comes with the European regulator scheduled to rule on the deal by November.
Shire’s share price rose marginally in the previous session, climbing 0.28 percent higher to close at 4,612.50p, while this morning, the stock has 2.38 percent to 4,722.50p as of 08:02 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.03 percent higher at 7,178.31 points. The group’s shares have added a little more than 50 percent to their value over the past year, as compared with about a 4.4-percent dip in the Footsie.
Takeda to win EU approval
Two people with knowledge of the matter told Reuters on Friday that Takeda was set to win conditional EU antitrust approval for its takeover of Shire, which would mark the biggest ever overseas acquisition by a Japanese company.
The new comes after the Japanese group recently proposed the sale of Shire’s prospective treatment for inflammatory bowel disease. The move followed discussions with the European Commission over the future potential overlap in the area of inflammatory bowel disease between Takeda’s marketed product Entyvio and the UK group’s pipeline compound SHP647, which is currently in late-stage clinical trials.
Reuters noted that the EU competition enforcer, which is scheduled to rule on the deal by November 20, and Takeda had declined to comment
Analysts on FTSE 100 pharmco
UBS reaffirmed its ‘neutral’ stance on Shire earlier this month, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 4,725.30p.