Takeda set to win approval from the EU to acquire Shire

According to reports, Takeda is set to win conditional approval from the EU to acquire Shire PLC for a whopping $62B.

November 12, 2018

Sources say Japanese drugmaker Takeda Pharmaceutical will likely win EU antitrust approval for its $62B bid for London’s Shire.

Once official (it’s scheduled for ruling by Nov. 20), the deal will be the biggest ever overseas acquisition by a Japanese company.

One for them, one for you, ya know?

Though regulators in the US, Japan, China, and Brazil have already greenlit the deal, the EU enforcer remained leary of Takeda and Shire’s overlap — most notably, the two companies’ gastrointestinal medications.

Takeda’s drug Entyvio brought in $1.82B for the Osaka-based drugmaker last year, and the EU thinks acquiring Shire’s compound would make the company far too powerful — so, last month, Takeda offered to divest Shire PLC’s compound along with a few other unnamed associated rights.

Shareholders also need some convincing

This is a huge deal for Takeda. If the acquisition is approved, the pharma company will make the list of the top 10 global drugmakers.

Takeda still needs two-thirds support from shareholders, but some of Takeda’s shareholders fear the resulting debt from the deal (the company secured a $30.9B bridge loan to help finance) will be too big a burden. 

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