Ashurst joins legal line-up as Japan's Takeda seals £46bn takeover of Shire

Takeda Pharma offers $62 billion in takeover of Britain's Shire

Adderall maker Shire agrees £46bn takeover by Takeda

Takeda Pharmaceutical Co. of Japan has finalized an agreement to buy Shire PLC, the second-biggest biotech employer in MA, for $62 billion in the largest-ever global takeover by a Japanese company. Shire shareholders will also receive 0.839 new Takeda shares or 1.678 Takeda American Depository Shares, shares of a foreign-based company that can be purchased on a USA stock exchange. The companies completed a $32bn merger the following year, with Hattrell leading the firm's team.

The deal, which will create one of the world's top 10 drug companies, caps a lengthy courtship by Takeda of its larger rival as it seeks to expand overseas.

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

"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.

The offer is worth £49.01 a share, about £5 more than Takeda's initial bid in late March. The initial offer was $59.42 (44 pounds) per share which the Shire outright rejected terming it as undervaluation. Shire, based in Lexington, Massachusetts, gets more than two-thirds of its revenue from North America.

The deal values Shire at £46 billion ($62.1 billion), excluding debt, according to the companies.


The deal is by far the largest acquisition of a foreign firm by a Japanese company, dwarfing SoftBank Group's 2016 acquisition of Britain's ARM Holdings in a $24.3 billion deal.

The companies eventually expect to realize about $1.4 billion in annual cost savings from combining, the majority of which will come from reducing duplicative functions in sales and marketing, Takeda said.

"The cost synergies seem to be much bigger than expected in the next three years", Credit Suisse analyst Fumiyoshi Sakai said.

Takeda will pay $66.56 per Shire share: $30.33 in cash, with the rest in the form of 0.839 of a new Takeda share.

Its earlier acquisitions include Ariad Pharmaceuticals in 2017, Nycomed in 2011 and Millennium Pharmaceuticals in 2008 and early this year, it proposed to buy TiGenix, which is expected to close by July this year. Last year, the company expanded its footprint in the U.S. oncology market with the US$4.7 billion purchase of Ariad Pharmaceuticals.

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