Takeda Pharmaceutical’s planned $62 billion takeover of Irish peer Shire has got off to a bad start. The value of the Japanese suitor’s offer is falling. Takeda’s stock fell 16 percent between its interest in Shire emerging and the agreement of terms in early May. It has since fallen another 5 percent.
As a result, the market cap of the nation’s leading drugmaker by sales fell below those of domestic rivals Astellas Pharma and Chugai Pharmaceutical at one point earlier this month, reported Nikkei.
Takeda needs to lift its own share price, and thereby the value of its offer. Each side was worth around $40 billion before the takeover talks. The offer is worth about $60 billion, to be paid roughly half in cash and half in new Takeda stock, so much that its share count will double.
Nikkei Asian Review reports that many Shire shareholders won’t want to hold Japanese paper, despite a planned US listing. The stock market is worried that there aren’t enough new investors interested in owning a large Japanese drugmaker to keep the share price at its former level.
Full Content: Asia Nikkei
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI