The European Commission has granted conditional clearance to Takeda’s acquisition of Shire (LON:SHP), the companies have said. The move came after the Japanese group recently proposed the sale of the UK group’s prospective treatment for inflammatory bowel disease in an effort to secure the approval.
Shire’s share price has climbed higher in today’s session, having added 0.48 percent to 4,622.00p as of 14:31 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.78 percent lower at 6,946.26 points. The group’s shares have added more than 28 percent to their value over the past year, as compared with a near six-percent dip in the Footsie.
EU clears Takeda’s acquisition of Shire
Japan’s Takeda announced in a statement today that the European Commission had approved its proposed acquisition of Shire. The company noted that the approval is conditional on the companies fulfilling commitments given to the Commission, specifically, in relation to the future potential overlap in the area of inflammatory bowel diseases, with Shire and Takeda having committed to divest the UK group’s compound SHP647 and certain associated rights.
“We are very pleased to have secured clearance from the European Commission, the final regulatory approval required to proceed with our acquisition of Shire,” Christophe Weber, President and Chief Executive Officer of Takeda, commented in the statement.
Advisory firms back $62-billion deal
The deal remains contingent on shareholder approval, and Reuters reported today that Institutional Shareholder Services and Glass Lewis had both recommended that Takeda shareholders vote for the acquisition at an investor meeting scheduled for December 5. The news marks a boost for the Japanese group which has faced a campaign by a group of retail investors looking to derail the takeover.