Daily Management Review

Takeda receives US permission to buy Shire


Japanese pharmaceutical giant Takeda is one step closer to the world leadership in the field of medicines. The company received unconditional permission from the US Federal Trade Commission to purchase the Irish Shire Plc.

Japanese Takeda’s acquisition of the Irish company Shire for $ 62 billion was announced in early May 2018. The purchase was approved by the boards of directors of both companies. 

However, the deal is not yet closed and still requires approval of regulatory authorities in China, the European Union, Brazil and about 20 other jurisdictions, as well as consent of the shareholders of both companies.

Japanese holders of Takeda papers are actively criticizing plans to expand the company. They are concerned about the possible risks associated with Takeda's credit ratings and its dividend policy. After the announcement of the takeover of Shire, Takeda shares fell 20%.

However, experts believe that the US permission will play a part in the company's negotiations with shareholders. "One of the biggest steps that Takeda must take is to get approval from its shareholders, and the fact that they have been approved by the US will help convince shareholders in the transaction," commented the senior adviser on the market for SBI Securities Co Kyoko Amemiya.

The transaction may be more closely watched in Europe than in the US. The pharmaceutical transaction is being studied in detail by the European Commission, because regulators are considering how drug producers compete in each of the 28 countries of the bloc where national health systems buy and finance drugs in different ways. However, experts believe that Europe will still give its consent to the deal.

If all the necessary permits are obtained, the takeover may take place in the first half of 2019. According to Takeda, the result will be emergence of the leading company in the field of biopharmaceuticals, headquartered in Japan.

At the same time, as Bloomberg notes, the deal will radically change the pharmaceutical industry in Japan, expanding its reach and, in particular, strengthening global channels for the production of expensive drugs used to treat rare diseases. Takeda itself noted earlier that the deal "will combine complementary positions of [companies] in gastroenterology and neurology, will provide leading positions in the segment of drugs for the treatment of rare diseases and plasmatherapy, which will strengthen the position in oncology."

source: bloomberg.com