Post by icemandios on Sept 6, 2022 15:17:14 GMT
EU to Disallow Illumina's Grail Purchase
Sep 06, 2022 | Andrew P. Han
NEW YORK – Illumina said on Tuesday that it has received a decision from the European Commission that will prohibit the firm from keeping liquid biopsy maker Grail.
In a statement, the firm said it is anticipating a divestment order in the coming months. Illumina plans to appeal the decision and "will begin reviewing strategic alternatives for Grail in the event the divestiture is not stayed pending Illumina's appeal," the firm said.
"We are disappointed with the European Commission's decision prohibiting us from acquiring Grail back to Illumina," said Charles Dadswell, general counsel of Illumina. "As we continue to believe, this merger is pro-competitive and will accelerate innovation. Last week the Chief Judge of the US Federal Trade Commission issued a decision supporting Illumina acquiring GRAIL."
Separately, the FTC said Sept. 2 that it plans to appeal the administrative law judge's initial decision that was favorable to Illumina's case to keep Grail.
Illumina first announced plans to acquire Grail in late 2020 for approximately $8 billion. In April 2021, European competition regulators said they would review the deal and later expanded that review into an in-depth investigation.
In August 2021, Illumina went ahead with the acquisition while vowing to keep Grail operating separately until the legal proceedings were resolved. The EC has since opened a second investigation into the deal and recently alleged that Illumina "jumped the gun" by finalizing the deal before regulators completed their review.
Illumina has challenged the EC's jurisdiction to review the deal and lost a bid to halt the investigation in July. Illumina is appealing that decision.
Illumina could be forced to pay a $300 million termination fee to Grail if the deal doesn’t close, according to terms of the 2021 agreement.
In Tuesday morning trading on the Nasdaq, shares of Illumina were up 4 percent at $204.61.
"Investor sentiment based upon our extensive conversations has been decidedly negative towards the Grail deal; hence, we believe terminating the deal and a subsequent divestiture would likely be viewed as a positive," Cowen's Dan Brennan wrote in a note to investors today.
Sep 06, 2022 | Andrew P. Han
NEW YORK – Illumina said on Tuesday that it has received a decision from the European Commission that will prohibit the firm from keeping liquid biopsy maker Grail.
In a statement, the firm said it is anticipating a divestment order in the coming months. Illumina plans to appeal the decision and "will begin reviewing strategic alternatives for Grail in the event the divestiture is not stayed pending Illumina's appeal," the firm said.
"We are disappointed with the European Commission's decision prohibiting us from acquiring Grail back to Illumina," said Charles Dadswell, general counsel of Illumina. "As we continue to believe, this merger is pro-competitive and will accelerate innovation. Last week the Chief Judge of the US Federal Trade Commission issued a decision supporting Illumina acquiring GRAIL."
Separately, the FTC said Sept. 2 that it plans to appeal the administrative law judge's initial decision that was favorable to Illumina's case to keep Grail.
Illumina first announced plans to acquire Grail in late 2020 for approximately $8 billion. In April 2021, European competition regulators said they would review the deal and later expanded that review into an in-depth investigation.
In August 2021, Illumina went ahead with the acquisition while vowing to keep Grail operating separately until the legal proceedings were resolved. The EC has since opened a second investigation into the deal and recently alleged that Illumina "jumped the gun" by finalizing the deal before regulators completed their review.
Illumina has challenged the EC's jurisdiction to review the deal and lost a bid to halt the investigation in July. Illumina is appealing that decision.
Illumina could be forced to pay a $300 million termination fee to Grail if the deal doesn’t close, according to terms of the 2021 agreement.
In Tuesday morning trading on the Nasdaq, shares of Illumina were up 4 percent at $204.61.
"Investor sentiment based upon our extensive conversations has been decidedly negative towards the Grail deal; hence, we believe terminating the deal and a subsequent divestiture would likely be viewed as a positive," Cowen's Dan Brennan wrote in a note to investors today.