Japan's Takeda clinches giant deal to buy drugmaker Shire

Japan's Takeda clinches giant deal to buy drugmaker Shire

Japan's Takeda clinches giant deal to buy drugmaker Shire

If it materialises, the deal would give Takeda greater access to the U.S. and European healthcare markets.

The combined firm would be the eighth-biggest drug maker in the world.

The offer is worth £49.01 a share, about £5 more than Takeda's initial bid in late March. It represents a 60% premium to the share price low from before Takeda confirmed its interest in a buy, he wrote in a Tuesday note to clients.

The acquisition will create a combined company to be half owned by Shire shareholders upon completion of the deal, which is subject to approval by shareholders of both companies and expected to close in the first half of 2019.

Takeda's takeover of Shire is the largest acquisition in the company's history, widely surpassing a near $14 billion acquisition of Nycomed in 2011. The Tokyo-listed pharmaceutical company's stock dropped 1.7% to 4,460 yen on Monday, a third straight fall session.

To help fund the cash portion of the deal, Takeda said it had secured a bridging loan facility of US$31 billion with JPMorgan Chase Bank, Sumitomo Mitsui Banking Corp and MUFG Bank, among others. Takeda's research and development also includes vaccines.

If he gets past that hurdle Weber will then need to knit together a new top 10 - by sales - global pharma company while carving out $1.4 billion in cost synergies.


The successful £46bn bid is the fifth offer put forward by Takeda, and follows a £43bn bid which was rejected by Shire in April.

Takeda, which has seen its market value slide to $34bn since announcing its interest, is taking over a much bigger rival. Shire, on the other hand, earns about two-thirds of its product revenue from the USA - a fact Takeda highlighted in its rationale for pursuing the biotech.

"Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda", Christophe Weber, Takeda's chief executive officer, said in a statement.

Sequiera said the acquisition will allow Takeda to strengthen two of its three core therapy areas: gastroenterology and neuroscience disease.

Founded in 1781 in Osaka, Japan, Takeda is a global, R&D-driven pharmaceutical with around 30,000 employees globally and operating in 70 countries and regions. Shire focuses on rare diseases, and it sells Adderall, which is used for ADHD.

Takeda is the largest pharmaceutical in Japan.

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