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Shire share price rallies as Takeda secures China’s approval for tie-up

Shares in Shire (LON:SHP) have jumped in London in today’s session, as Takeda Pharmaceutical said that China had cleared the group’s takeover of the London-listed drugmaker. The news marks a boost for the companies after it recently emerged that a member of the family which founded Takeda had criticised the tie-up.

As of 12:30 BST, Shire’s share price had added 2.48 percent to 4,499.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.23 percent higher at 7,298.34 points. The group’s shares have added more than 13 percent to their value over the past year, as compared with about a 0.16-percent gain in the Footsie.

Tie-up receives clearance from China

Takeda announced in a statement today that it had received unconditional clearance from the State Administration for Market Regulation in China for its proposed acquisition of Shire. The approval comes after the Japanese drugmaker received unconditional clearance for the tie-up from the US Federal Trade Commission in July, as well as unconditional clearance from the Brazilian Administrative Council for Economic Defence last month.

Reuters noted in its coverage of the news that the acquisition, which will be the largest overseas purchase by a Japanese company, awaits approvals from the European Union and Japan. The deal also remains subject to approval by the shareholders of both companies. Takeda expects the deal to close in the first half of next year.

Analysts on London-listed drugmaker

As of September 12, the consensus forecast amongst 19 polled investment analysts covering Shire for the Financial Times has it that the company will outperform the market. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 4,725.30p.

As of 12:55 BST, Friday, 14 September, Shire PLC share price is 4,501.00p.

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